online econ2

online econ2 - Many commentators have concerns about the...

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Many commentators have concerns about the future of the U.S. economy, namely the volatile stock market with its recent corrections (the stock market lost a significant part of its value/volume as of late 2008), the crisis in the lending & banking industry, and the slowdown in the housing sector. In your view, what concrete actions or policies could be taken (or should be taken or not be taken) by the U.S. federal government to promote and secure economic growth for the present and for the future? Subject: Discussion Question for Session 13 The key to economic growth is a competitive market and economic price and currency stability, reducing the risk of long term investments. This could be achieved by cutting interest rates and increase the level of expenditures. If this is done, however it has to be done very carefully and steadily because it may easily cause inflation. The governments use of fiscal and monetary policies in order to obtain economic growth is risky, however I believe that it may be the least costly for the amount of efficiency. If this is the route that is chosen, I believe that the goods and services in which the taxes are raised must be very carefully determined. 1 If the per capita income of a country is growing at 3.5 percent per year, approximately how long will it take for that income to double? a. 20 years b. 25 years c. 35 years d. 70 years status: incorrect (0.0) correct: a your answer: c feedback: Incorrect. Using the "rule of 70," 70/3.5 = 20 years. 2 Which of the following will be required for a country to move up the income ladder and achieve high-income status? a. Rapid growth of the money supply. b. Restrictions limiting the import of goods from other nations, particularly low-wage countries. c. Tax incentives that encourage consumption rather than investment. d. Sustained economic growth. status: incorrect (0.0) correct: d your answer: b feedback: Incorrect. Sustained economic growth is required for a country to move up the income ladder and achieve high-income status.
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3 Which of the following is true? a. In recent decades, the rich countries of the world have consistently grown more rapidly than poor countries. b. No LDC was able to achieve a more rapid growth rate than the United States during the 1980 through 2005 period. c. During recent decades, most LDCs have stagnated economically. d. During 1980 through 2005, the fastest growing countries in the world were mostly LDCs. status: incorrect (0.0) correct: d your answer: b feedback: Incorrect. Between 1980 and 2005 the fastest growing countries in the world were mostly LDCs. 4 Which of the following would be most likely to improve the standard of living of a less- developed country? a.
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This note was uploaded on 01/26/2011 for the course ECON 101/102 taught by Professor Ivytechonline during the Spring '10 term at Indiana.

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online econ2 - Many commentators have concerns about the...

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