Which of the following does not contribute to differences in interest rates?
a. Different loans are for different periods of time.
b. Large loans generate more administrative costs per dollar than smaller loans.
c. Different loans are subject to different tax rules.
d. Loans to established businesses are evaluated differently from loans to new businesses.
e. The longer the period of repayment, the greater the risk of higher-than-expected inflation.
B
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Explain what is meant by the term ceteris paribus. Why is this concept often used in economic models?
What will be an ideal response?
All of the following would be potential problems if developing nations around the world emphasized export promotion EXCEPT
A) industrial nations may be unable to absorb the exports of many newly industrializing nations. B) it would be much harder to emphasize exports under the WTO framework if the emphasis in exports requires some kind of subsidies. C) export growth may not add to GDP if it crowds out growth in output of goods for domestic consumption. D) current research has clearly established that there is no causal connection between exports and faster economic growth.