To abstract from reality in an economic model means that:
A. we include only a few of the essential aspects of reality.
B. the economic study surveys only a very limited period of time.
C. we include only those elements which support our hypothesis.
D. the model includes every aspect of the real world.
Answer: A
Economics
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In the model of the money supply process, the bank's role in influencing the money supply process is represented by
A) the excess reserve. B) both the excess reserve and the market interest rate. C) the currency ratio. D) only borrowed reserves.
Economics
Why might a country seek to protect an industry, even when the benefits are greatly outweighed by the cost?
What will be an ideal response?
Economics