Econ Exam 5

The use of money A. reduces the transaction costs of exchange. B. eliminates the double coincidence of wants. C. allows for greater specialization. D. all of the above.

D. all of the above.

Congress passed legislation to create the Federal Reserve System in 1913 in order to A. end the instability created by a huge crude oil price hike during that time. B. end the instability created by a savings and loan fiasco that occurred during that time. C. take the monetary control over the economy away from the Treasury Department. D. end the instability created by bank panics by acting as a lender of last resort.

D. end the instability created by bank panics by acting as a lender of last resort.

Technological change is more important to​ long-run economic growth than changes in capital. The easiest way for firms to gain access to new technology is through A. savings and investment. B. wars and civil strife. C. health and education. D. foreign direct investment.

D. foreign direct investment.

What is fiat​ money? A. money issued by financial​ intermediaries, such as​ banks, but not the central bank B. an asset that has the ability to be easily converted into the medium of exchange C. money that has value independent of its use as money D. money that is authorized by a central bank and that does not have to be exchanged for gold or some other commodity money

D. money that is authorized by a central bank and that does not have to be exchanged for gold or some other commodity money

Andover Bank and Lowell Bank each sell​ one-year certificates of deposit​ (CDs). The interest rates on these CDs are given in the table below for a​ three-year period. Bank...............................2018............2019............2020 Andover Bank..............3%..............4%................14​% Lowell Bank...................7​%..............7%.................7​% Suppose you deposit ​$1000 in a CD in each bank at the beginning of 2018. At the end of​ 2018, you take your $1000 and any interest earned and invest it in a CD for the following year. You do this again at the end of 2019. At the end of​ 2020, the interest over this​ three-year period at Andover Bank is ​$________. ​(Enter your response rounded to the nearest penny​.)

$221.17 [1000 X (1 + 3/100) X (1 + 4/100) X (1 + 14/100)]-1000

Andover Bank and Lowell Bank each sell​ one-year certificates of deposit​ (CDs). The interest rates on these CDs are given in the table below for a​ three-year period. Bank...............................2018............2019............2020 Andover Bank..............3%..............4%................14​% Lowell Bank...................7​%..............7%.................7​% Suppose you deposit ​$1000 in a CD in each bank at the beginning of 2018. At the end of​ 2018, you take your $1000 and any interest earned and invest it in a CD for the following year. You do this again at the end of 2019. At the end of​ 2020, the interest over this​ three-year period at Lowell Bank is $________. ​(Enter your response rounded to the nearest penny​.)

$225.04 [1000 X (1 + 7/100) X (1 + 7/100) X (1 + 7/100)]-1000

Percentage change in real GDP per capita=

( RGDP per capita this year - RGDP per capita last year / RGDP per capita last year) X 100

The United States is divided into ____ Federal Reserve Districts. The Federal Reserve​ Bank's Board of Governors consists of ____ members appointed by the president of the U.S. to​ 14-year, ​ non-renewable terms. One of the board members is appointed to a ____ year, renewable term as the chairman.

12; 7; 4

An initial decrease in a​ bank's reserves will decrease checkable deposits A. by an amount equal to the decrease in reserves. B. by an amount greater than the decrease in reserves C. by an amount less than the decrease in reserves. D. An initial decrease in reserves will increase checkable deposits.

B. by an amount greater than the decrease in reserves

What is the percentage growth rate if an economy grows from​ $5.2 trillion GDP to​ $5.5 trillion GDP in a​ one-year period? The growth rate is ___%. ​(Round your response to two decimal places.​)

5.77%

In a fractional reserve banking systemLOADING...​, what is the difference between a​ "bank run" and a​ "bank panic?" A. A bank run involves one​ bank; a bank panic involves many banks. B. A bank run is a U.S.​ issue; a bank panic is an international issue. C. A bank run involves many​ banks; a bank panic involves one bank. D. A bank run is a local​ issue; a bank panic is a national issue.

A. A bank run involves one​ bank; a bank panic involves many banks.

Suppose that Congress changes the law to require all firms to accept paper currency in exchange for whatever they are selling. All of the following are correct ​except: A. Firms lose since they​ don't have the convenience of credit cards. B. Consumers gain because the volume of their loans decrease. C. Firms win since they​ don't have pay for credit card processing fees. D. There is substantial loss for the credit card companies as they lose business.

A. Firms lose since they​ don't have the convenience of credit cards.

In the late​ 1940s, the Communists under Mao Zedong were defeating the government of China in a civil war. The paper currency issued by the Chinese government was losing much of its​ value, and most businesses refused to accept it. At the same​ time, there was a paper shortage in Japan. During these​ years, Japan was still under military occupation by the United States. Some U.S. troops in Japan realized that they could use dollars to buy up vast amounts of paper currency in​ China, ship it to Japan to be recycled into​ paper, and make a substantial profit. Under these​ circumstances, was the Chinese paper currency a commodity money or a fiat money​? A. It is a commodity money because it has value as recycled paper. Your answer is correct. B. It is a fiat money because it has no value except as money. C. It is a fiat money because it has value as recycled paper. D. It is a commodity money because it has no value except as money.

A. It is a commodity money because it has value as recycled paper. Your answer is correct.

The English economist William Stanley Jevons described a world tour during the 1880s by a French​ singer, Mademoiselle Zelie. One stop on the tour was a theater in the Society​ Islands, part of French Polynesia in the South Pacific. She performed for her usual​ fee, which was​ one-third of the receipts. This turned out to be three​ pigs, 23​ turkeys, 44​ chickens, 5000​ coconuts, and​ "considerable quantities of​ bananas, lemons, and​ oranges." She estimated that all of this would have had a value in France of 4000 francs. According to​ Jevons, "as Mademoiselle could not consume any considerable portion of the receipts​ herself, it became necessary in the meantime to feed the pigs and poultry with the​ fruit." Do the goods Mademoiselle Zelie received as payment fulfill the four functions of money​? A. No. The goods are not a store of value. B. No. The goods are not a medium of exchange. C. No. The goods are only a medium of exchange and store of value. D. Yes. The goods fulfill all four functions of money.

A. No. The goods are not a store of value.

Which one of the following is not a function of​ money? A. Open market operation. B. Medium of exchange. C. Store of value. D. Unit of account.

A. Open market operation.

What can​ low-income countries do in order to increase the amount of loanable funds available to firms for investment projects such as new factories or improved​ technology? A. Provide savings incentives B. Print more money C. Increase the interest rate on borrowing D. All of the above

A. Provide savings incentives

Growth rates matter because living standards may stagnate in an economy that grows too slowly. A. True B. False

A. True

If coins could have been easily used to purchase goods and services in other​ areas, the coins would also have some intrinsic value. A. True B. False

A. True

A​ country's rate of economic growth is important because A. an economy that grows too slowly fails to raise the living standards of its citizens. B. a slowly growing economy always invades its neighboring countries in search of wealth. C. a slowly growing economy experiences very slow growth in population. D. an economy that grows too slowly is always involved in human rights violations.

A. an economy that grows too slowly fails to raise the living standards of its citizens.

The U.S. dollar can best be described as A. fiat money. B. commodity money. C. reserve money. D. commodity-backed money.

A. fiat money.

In the 1980s and​ 1990s, a small group of countries experienced high rates of growth. These countries are sometimes called the newly industrializing countries. Where are most of these countries​ located? A. in East Asia B. in Latin America C. in Western Europe D. in Africa

A. in East Asia

The process technologies—institutions like laws and inventory management systems—that appear central to raising incomes per capita flow less like water and more like bricks. But ideas and inventions—the importance of ABCs and vaccines for DPT—really might flow more easily across borders and over distances. As these countries become able to increase their standards of​ living, there A. will be economic growth but in order to have sustainable​ growth, these countries need their incomes to increase. B. may be a decline in income and that will further lower the prospects of growth for these nations. C. will be a significant drop in the rate of economic growth because these countries have very little growth in their incomes. D. may be an increase in income but higher rates of economic growth is needed for these countries to​ catch-up with​ high-income countries.

A. will be economic growth but in order to have sustainable​ growth, these countries need their incomes to increase.

If something is to be considered as​ money, it has to fulfill _____________

All four functions

Suppose two​ countries, Country A and Country​ B, have a similar real GDP per capita. Country A has an average economic growth rate of​ 2% and Country B has an average economic growth rate of​ 3.3%. In the long​ run, what can we predict about living standards in the two​ countries? A. The countries will experience similar increases in their living standards. B. Country​ B's living standards will increase much more rapidly in the long run. C. Growth rates are not related to living standards. D. Country​ A's living standards will increase much more rapidly in the long run.

B. Country​ B's living standards will increase much more rapidly in the long run.

Which of the following best explains the difference between commodity money and fiat​ money? A. Commodity money is usually authorized by the central​ bank, whereas fiat money has to be exchanged for gold by the central bank. B. Fiat money has no value except as​ money, whereas commodity money has value independent of its use as money. C. All money is commodity​ money, as it has to be exchanged for gold by the central bank. D. Commodity money has no value except as​ money, whereas fiat money has value independent of its use as money.

B. Fiat money has no value except as​ money, whereas commodity money has value independent of its use as money.

In addition to the Federal Reserve​ Bank, what other economic actors influence the money​ supply? A. The U.S. President and Vice President. B. Households, firms, and banks. C. The U.S. Mint and the U.S. Treasury. D. The U.S. Senate and the U.S. House of Representatives.

B. Households, firms, and banks.

The economic growth model explains growth in real GDP per capita in the long run. Because of the importance of labor productivity in explaining economic​ growth, the economic growth model focuses on the causes of increases in​ long-run labor productivity. What are the key factors that determine labor​ productivity? ​(Mark all that​ apply.) A. Trade B. Quantity of capital per hour worked C. Efficiency wages D. Technological change

B. Quantity of capital per hour worked D. Technological change

According to the quantity theory of money inflation results from which of the​ following? A. The money supply grows at the same rate as GDP. B. The money supply grows faster than real GDP. C. The money supply grows slower than real GDP.

B. The money supply grows faster than real GDP.

In his book The White​ Man's Burden​, William Easterly reports that A vaccination campaign in southern Africa virtually eliminated measles as a killer of children. Routine childhood immunization combined with measles vaccination in seven southern Africa nations starting in 1996 virtually eliminated measles in those countries by 2000. A national campaign in Egypt to make parents aware of the use of oral rehydration therapy from 1982 to 1989 cut childhood deaths from diarrhea by 82 percent over that period. The near elimination of measles and the large decrease in childhood deaths from diarrhea in southern Africa and Egypt A. increased real GDP per​ capita, but decreased productivity and human capital resulting in a lower standard of living. B. did not increase real GDP per​ capita, but increased productivity and human capital resulting in a higher standard of living. C. did not increase real GDP per​ capita, but productivity and human capital development fell resulting in a lower rate of growth. D. helped the people of southern Africa and Egypt temporarily but did not make help much in the long run.

B. did not increase real GDP per​ capita, but increased productivity and human capital resulting in a higher standard of living.

At the end of​ 2020, you will have earned more on your Lowell Bank​ CD, because A. the average rate of interest charged by Andover is less than the average rate of interest charged by Lowell. B. even a modest increase in the interest rate compounded over time will make the earnings higher. C. it all depends on which bank has the higher interest rate in the beginning. D. Lowell Bank uses compound interest​ calculation; Andover does not.

B. even a modest increase in the interest rate compounded over time will make the earnings higher.

The size of a​ nation's economy is measured​ by: A. GNI. B. gross domestic product. C. net national product. D. None of the above.

B. gross domestic product.

Money serves as a unit of account when A. it can be easily stored and used for transactions in the future. B. prices of goods and services are stated in terms of money. C. sellers are willing to accept it in exchange for goods or services. D. All of the above are examples of money serving as a unit of account.

B. prices of goods and services are stated in terms of money.

Which of the following events marks the beginning of significant economic growth in the world​ economy? A. the Bolshevik Revolution B. the Industrial Revolution in England C. the victory of Mao Zedong and the Communist Party in China in 1949 D. the American Revolution of 1776

B. the Industrial Revolution in England

A double coincidence of wants refers to A. the idea that a barter economy is more efficient than an economy that uses money. B. the fact that for a barter trade to take place between two​ people, each person must want what the other one has. C. the situation in which a good that is used as money also has value independent of its use as money. D. the situation where two parties are involved in a transaction where money is the medium of exchange.

B. the fact that for a barter trade to take place between two​ people, each person must want what the other one has.

Suppose the reserve requirement is 55​%. What is the effect on total checkable deposits in the economy if bank reserves increase by ​$40 ​billion? A.$40 billion increase B. $88 billion increase C. $800 billion increase D. $200 billion increase

C. $800 billion increase

The Federal Reserve is governed by​ the: A. Department of Treasury. B. Federal Open Market Committee. C. Board of Governors. D. All of the above.

C. Board of Governors.

Which of the following statements about compounding is​ correct? A. Compounding minimizes the differences in interest rates or growth rates over short periods of time. B. Compounding magnifies the importance of the effect of inflation on increases in the standard of living of the typical person. C. Compounding magnifies even small differences in interest rates or growth rates over long periods of time. D. Compounding highlights the social characteristics necessary for economic growth to occur.

C. Compounding magnifies even small differences in interest rates or growth rates over long periods of time.

Evaluate the following​ statement: Banks use deposits to make consumer loans to households and commercial loans to businesses. Banks will loan out every penny of their deposits in order to make a profit. A. False. In​ reality, banks are rarely able to find borrowers for all of their deposits. B. True. Any money that is left over after a bank loans money to businesses and households will be loaned to other banks. C. False. Banks must hold a fraction of their deposits as vault cash or with the Federal Reserve. D. True. Deposits that sit in a bank as vault cash earn no interest.

C. False. Banks must hold a fraction of their deposits as vault cash or with the Federal Reserve.

In​ 2008, the required reserve ratio for a​ bank's first​ $9.3 million in checking account deposits was zero. It was 3 percent on deposits between​ $9.3 million and​ $43.9 million, and 10 percent on deposits above​ $43.9 million. In most​ cases, and for​ simplicity, we assume that the required reserve ratio is 10 percent on all deposits.​ Therefore, the simple deposit multiplier is 10. Is the​ real-world deposit multiplier greater​ than, less​ than, or equal to the simple deposit​ multiplier? A. Equal. There is no difference between the two. B. Greater. Inflation plays a large role in the increase in checkable deposits. C. Less. The simple deposit multiplier is a model with assumptions that keep it higher than the​ real-world multiplier. D. None of the above. They are very different concepts.

C. Less. The simple deposit multiplier is a model with assumptions that keep it higher than the​ real-world multiplier.

In November 2016 the Indian government decided to withdraw paper currency that made up more than 86 percent of the value of all rupee bills in circulation. An article in the Wall Street Journal published shortly after that decision described a small merchant in India as having​ "traded one customer a kilogram of​ potatoes, cauliflower and tomatoes for half a liter of honey. That was a good​ deal, he says. In normal​ times, the honey would be 120 rupees in the market​ (around $1.80) and the vegetables 70​ rupees." Does the​ merchant's ability to arrange a barter deal with a customer indicate that the Indian economy​ doesn't actually require money to function​ efficiently? Briefly explain. A. Yes, the barter deal indicates that India has found an innovative way to keep funds flowing in the economy without the use of money. B. ​Yes, the barter deal indicates that merchants are now better off from barter than when rupees were in circulation. C. No, resorting to barter means that each trade required a double coincidence of wants for trade to occur. D. No, for the Indian economy to function​ efficiently, it still needs money to prevent the rich from storing value.

C. No, resorting to barter means that each trade required a double coincidence of wants for trade to occur.

Technological changes that make it possible for businesses to ditch cash include all of the following except A. Apple Pay. B. PayPal. C. barter. D. credit cards.

C. barter.

The most important role of the Federal Reserve in​ today's U.S. economy is A. balancing the​ government's budget by increasing taxes and cutting spending. B. negotiating with foreign nations to reduce the enormous trade deficit. C. controlling the money supply to pursue economic objectives. D. managing the Wall Street investment banking and hedge fund operations.

C. controlling the money supply to pursue economic objectives.

Technological change is more important to​ long-run economic growth than changes in capital. The easiest way for firms to gain access to new technology is through A. health and education. B. savings and investment. C. foreign direct investment. D. wars and civil strife.

C. foreign direct investment.

Which one of the following is not a reason why businesses accept paper currency knowing​ that, unlike a gold​ coin, the paper the currency is printed on is worth very​ little? Paper currency is a good medium of exchange because it is A. of standard quality. B. universally acceptable. C. not valuable. D. divisible. E. durable.

C. not valuable.

Money serves as a standard of deferred payment when A. sellers are willing to accept it in exchange for goods or services. B. it can be easily stored today and used for transactions in the future. C. payments agreed to today but made in the future are in terms of money. D. All of the above are examples of money serving as a standard of deferred payment.

C. payments agreed to today but made in the future are in terms of money.

​Healthier, more educated workers tend to be more productive. Greater overall productivity per hour worked is a fundamental component of​ long-term economic growth.​ However, many very successful individuals often find few opportunities in their own developing​ countries, and leave them for industrial countries. By improving health and​ education, developing countries can generate economic​ growth, and increase incomes. This will help combat the prevalence of educated people leaving their home countries for opportunities elsewhere. That​ is, it will combat A. communism. B. political reform. C. the brain drain. D. corruption.

C. the brain drain.

A business that​ "ditches cash" means A. the business prefers to barter in exchange for goods and services. B. this is a business that transfers money from the rich to the poor. C. the business no longer accepts currency as payment. D. the business is no longer able to find a double coincidence of wants.

C. the business no longer accepts currency as payment.

Economist Charles Kenny of the World Bank has argued​ that: The process technologies—institutions like laws and inventory management systems—that appear central to raising incomes per capita flow less like water and more like bricks. But ideas and inventions—the importance of ABCs and vaccines for DPT—really might flow more easily across borders and over distances. If Kenny is​ correct, these facts indicate that these​ low-income countries A. will need a much lower rate of economic growth to significantly close the gap in living standards with​ high-income countries. B. will remain in their phase of stagnating growth and will never be able to​ catch-up with the living standards with​ high-income countries. C. will have a healthier and more productive labor force as there is significant improvment in​ health, education, and civil and political liberties. D. will have a healthier and more productive labor force that will increase rapidly their rates of growth of real GDP per capita in the decades ahead.

C. will have a healthier and more productive labor force as there is significant improvment in​ health, education, and civil and political liberties.

The Federal Reserve was created​ in: A. 1898. B. 1873. C. 1939. D. 1913.

D. 1913.

New growth theoryLOADING... suggests that the accumulation of knowledge capital can be slowed because knowledge is both nonrival and nonexcludable. How does the federal government intervene in the market to increase the amount of knowledge​ capital? A. Patents B. Subsidies C. Public education D. All of the above E. A and B only

D. All of the above

Which of the following conditions make a good suitable for use as a medium of​ exchange? A. The good must be acceptable to​ (that is, usable​ by) most buyers and sellers. B. The good should be​ durable, valuable relative to its​ weight, and divisible. C. The good should be of standardized​ quality, so that any two units are identical. D. All of the above conditions must be met.

D. All of the above conditions must be met.

Growth in per capita GDP is important because it translates​ to: A. lower government transfers. B. higher tax revenues. C. more jobs. D. All of the above.

D. All of the above.

Which of the following is a monetary policy tool used by the Federal Reserve​ Bank? A. Buying​ $500 million worth of government​ securities, such as Treasury bills. B. Increasing the reserve requirement from 10 percent to 12.5 percent. C. Decreasing the rate at which banks can borrow money from the Federal Reserve. D. All of the above.

D. All of the above.

Which of the following is a monetary policy tool used by the Federal Reserve​ Bank? A. Decreasing the rate at which banks can borrow money from the Federal Reserve. B. Increasing the reserve requirement from 10 percent to 12.5 percent. C. Buying​ $500 million worth of government​ securities, such as Treasury bills. D. All of the above.

D. All of the above.

Which of the following is true with respect to ​hyperinflation? A. It can be hundredslong dash—even thousandslong dash—of percentage points per year. B. In the presence of​ hyperinflation, firms and households avoid holding money. C. It is caused by central banks increasing the money supply at a rate much greater than the growth rate of real GDP. D. All of the above.

D. All of the above.

Why do economic growth rates​ matter? A. High levels of sustained economic growth reduce infant mortality. B. High growth rates coincide with improved living standards. C. When a country sustains high growth​ rates, life expectancy at birth increases. D. All of the above. E. A and C only.

D. All of the above.

The M2 definition of the money supply includes A. M1, savings​ accounts, small time​ deposits, money​ markets, and credit cards. B. savings​ accounts, mutual​ funds, small time​ deposits, and credit cards. C. ​M1, savings​ accounts, mutual​ funds, and credit cards. D. M1, savings​ accounts, small time​ deposits, and money markets.

D. M1, savings​ accounts, small time​ deposits, and money markets.

Strong​ rule-of-law countries grow more rapidly than weak​ rule-of-law countries. What factor will most likely improve economic growth in weak​ rule-of-law countries? A. Communism B. Capitalism C. Corruption D. Political reform

D. Political reform

The use of money A. eliminates the double coincidence of wants. B. allows for greater specialization. C. reduces the transaction costs of exchange. D. all of the above.

D. all of the above.

A baseball fan with a Mike Trout baseball card wants to trade it for a Giancarlo Stanton baseball​ card, but everyone the fan knows who has a Stanton card​ doesn't want a Trout card. Economists characterize this problem as a failure of the A. irrational exuberance doctrine. B. market clearing mechanism. C. theory of comparative advantage. D. principle of a double coincidence of wants.

D. principle of a double coincidence of wants.

In his book The White​ Man's Burden​, William Easterly reports that A vaccination campaign in southern Africa virtually eliminated measles as a killer of children. Routine childhood immunization combined with measles vaccination in seven southern Africa nations starting in 1996 virtually eliminated measles in those countries by 2000. A national campaign in Egypt to make parents aware of the use of oral rehydration therapy from 1982 to 1989 cut childhood deaths from diarrhea by 82 percent over that period. The elimination of measles and childhood deaths from diarrhea will A. remove a major impediment to growth and help the nation so much that per capita GDP will rise immediately. B. remove a major impediment to​ growth, but productivity will not change and this will not lead to economic growth. C. be a motivating factor for the countries to save more and invest more but may not lead to economic growth. D. remove a major impediment to​ growth, increase productivity and should eventually lead to increases in real GDP per capita.

D. remove a major impediment to​ growth, increase productivity and should eventually lead to increases in real GDP per capita.

​Recently, economists Carol Shiue and Wolfgang Keller of the University of Texas at Austin published a study of​ "market efficiency" in the eighteenth century in​ England, other European​ countries, and China. If the markets in a country are​ efficient, a product should have the same price wherever in the country it is​ sold, allowing for the effect of transportation costs. If prices are not the same in two areas within a​ country, it is possible to make profits by buying the product where its price is low and reselling it where its price is high. This trading will drive prices to equality. Trade is most likely to​ occur, however, if entrepreneurs feel confident that their gains will not be seized by the government and that contracts to buy and sell can be enforced in the courts.​ Therefore, the more efficient a​ country's markets​ were, the more its institutions would have favored​ long-run growth. Shuie and Keller found that in​ 1770, the efficiency of markets in England was significantly greater than the efficiency of markets elsewhere in Europe and in China. This finding supports Douglas​ North's argument concerning why the Industrial Revolution occurred in England because A. the British government seized property and confiscated​ wealth, making it very risky for businesses. B. the British courts failed miserably in protecting wealth and private property rights. C. the British monarchy did not trust the entrepreneurs and imposed heavy taxes on them. D. the efficient market system thrived due to a stable British parliament and an independent court system.

D. the efficient market system thrived due to a stable British parliament and an independent court system.

Since each​ country's real GDP is measured in a different​ currency, before one can compare the real GDPs of different​ countries, it is necessary to use A. the open market operation​ (OMO) for international price level. B. the producer price index​ (PPI) for a uniform price level. C. the consumer price index​ (PPI) for a constant price level. D. the purchasing power parities​ (PPPs) as a currency converter.

D. the purchasing power parities​ (PPPs) as a currency converter.

In his book The White​ Man's Burden​, William Easterly reports that A vaccination campaign in southern Africa virtually eliminated measles as a killer of children. Routine childhood immunization combined with measles vaccination in seven southern Africa nations starting in 1996 virtually eliminated measles in those countries by 2000. A national campaign in Egypt to make parents aware of the use of oral rehydration therapy from 1982 to 1989 cut childhood deaths from diarrhea by 82 percent over that period. As a result of the near elimination of measles and the large decrease in childhood deaths from diarrhea in southern Africa and​ Egypt, A. these​ low-income countries were on a path to​ catch-up with the living standards with​ high-income countries. B. the real GDP per capita for these​ low-income countries increased significantly. C. the mortality rate in these​ low-income countries became higher. D. the standard of living for these​ low-income countries increased significantly.

D. the standard of living for these​ low-income countries increased significantly.

Which of the following is true with respect to Irving​ Fisher's quantity​ equation, M×V=P×Y​? A. V​ = Average number of times a dollar is spent on goods and services B. M​ = M1 definition of the money supply C. V=(P×Y)/M D. P​ = the GDP deflator E. All of the above

E. All of the above

The average annual growth rate in real GDP per capita between years=

Find the percentage change in real GDP per capita between each year and the base year and add them together then divide it by the number of years

Technological change is ______________________ for economic growth than additional capital.

More important

At the end of​ 2020, you will have earned more on your __________ Bank​ CD

Lowell

The Federal Reserve district bank president of the ____________ Fed is always a member of the FOMC.

New York

Country 2013 2014 2015 2016 MEXICO $13,468 $13,773 $14,136 $14,461 PANAMA 32 34 36 38 THAILAND 9,146 9230 9,501 9808 Note: All values are in billions of domestic currency at constant prices. The country that experienced the highest average annual growth rate between 2014 and 2016 is __________, with an average annual growth rate of ______​%. (Enter your response as a percentage rounded to two decimal​ places.)

Panama 5.90%

Country 2013 2014 2015 2016 MEXICO $13,468 $13,773 $14,136 $14,461 PANAMA 32 34 36 38 THAILAND 9,146 9230 9,501 9808 Note: All values are in billions of domestic currency at constant prices. The country that experienced the highest rate of economic growth during 2014 is __________​, with a growth rate of _________​%. ​(Enter your response as a percentage rounded to two decimal​ places.)

Panama; 6.25%

Average annual growth rate =

Sum of the growth rates ÷number of years.

Globalization has made it __________ for developing countries to get investment funds and technology.

easier

The average annual growth rate is the (rate at which GDP must grow on average each year OR average rate of growth in GDP OR percentage increase in GDP) between 2007 and​ 2017, and the total percentage increase in real GDP is the (percentage increase in real GDP between the two years 2007 and 2017 OR average rate of growth over the years 2007 to 2017 OR absolute increase in real GDP between the years 2007 and 2017).

rate at which GDP must grow on average each year; percentage increase in real GDP between the two years 2007 and 2017