For developing countries, one of the dangers inherent in the inflows of capital that finance investment is
A. increasing unemployment that accompanies foreign investment.
B. rapid outflows of funds that put pressure on exchange rates.
C. the deflation that accompanies inflows of foreign capital.
D. the inflation that accompanies outflows of foreign capital.
Answer: B
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The natural rate of unemployment (i) is the economy's desirable level of unemployment. (ii) arises from a single problem that has a single solution. (iii) is the amount of unemployment that does not go away on its own
a. (i) and (ii) only b. (iii) only c. (i), (ii), and (iii) d. None of the above is correct.
Which is a primary use for national income accounting?
A. To determine whether there is a fair and equitable distribution of income in the economy. B. To assess the economic efficiency of specific industries in the economy. C. To measure changes in the value of goods and services produced in the economy. D. To analyze the environmental cost of economic growth.