Modern investment banking houses emerged in the U.S. in the 19th century to assist in financing:

An inflationary gap is the amount by which

A) total planned production exceeds total planned real expenditures in the long run. B) the short-run equilibrium level of nominal GDP is above the short-run level of real GDP. C) the short-run equilibrium level of nominal GDP is below the short-run level of real GDP. D) the short-run equilibrium level of real GDP is above the full-employment level of real GDP.

Answer the following statements true (T) or false (F)

1. The demographic transition view of population growth believes that slower population growth will lead to rising incomes. 2. Without an abundant endowment of natural resources, a nation cannot achieve rapid economic growth. 3. Saving is a larger percentage of domestic output in DVCs than in IACs, but the saving is put to poor use. 4. Capital flight from DVCs (developing countries) tends to offset much of the foreign loans and aid that they receive from IACs (industrially advanced countries). 5. When technological advances are of the capital-using kind, it is possible for an economy to increase its productivity without any net investment in capital goods.