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53.The financial system performs certain tasks in order to make the financial market more efficient. Which one of the following is NOT one of these tasks?A)reducing riskB)reducing menu costsC)reducing transaction costsD)providing liquidity54.Deflation in falling price level (negative inflation rate); Disinflation is the active policy that attempts to bring down inflation ratePage 11
55.Which of the following is true?56.The best currently available measure of the standard of living in a country is:57.Physical capital includes:A)the education or knowledge a worker has in his or her physical being.B)the tools a worker has to work with.C)the money available for the worker to use.D)shares of stock.58.If your nominal wage in 2000 was $70,000, and CPI in 2000 was 150, what was your real wage?Use the following to answer question 59:Table: Hypothetical Relationship 59.(Table: Hypothetical Relationship) The accompanying table represents a hypothetical relationship between physical capital per worker and the growth rate of productivity. This economy is experiencing:
60.Due to the presence of diminishing returns to capital, doubling the amount of physical capital available for one worker to use will:61.Education's effect on productivity:A)is believed to be less important than the amount of physical capital a worker has to work with.B)is an even more important determinant of growth than increases in physical capital.C)has fallen in the past century in the United States.D)depends on the wealth of the country.62.The convergence hypothesis is: