Answer the following statements true (T) or false (F)
1. The creation of an adequate infrastructure in a nation is primarily the responsibility of the public sector.
2. The corruption and poor administration that are common to the public sectors of many DVCs suggest that government may not be very effective in promoting economic growth.
3. The industrially advanced nations can assist developing nations by reducing trade barriers and by providing both private and public capital.
4. An example of direct foreign investment would be the building of a motorcycle factory in China by Honda Motors.
5. In recent years, a greater proportion of private capital flows to DVCs has been direct foreign investment rather than loans to DVC governments.
1. T
2. T
3. T
4. T
5. T
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A depression can be defined as: a. a mild reduction in total production coupled with a rising unemployment rate that lasts for several years. b. a mild decline in total production that lasts less than six months
c. a severe fall in stock prices that causes financial panic and lasts for several years. d. a severe reduction in total production coupled with high unemployment that lasts for several years. e. a decline in government spending and taxes that lasts for several months.
Which of the following will not increase when net taxes decrease?
What will be an ideal response?