Which of the following is not a characteristic of less-developed countries?

Which of the following is not a characteristic of less-developed countries?
 a. High rates of illiteracy.
  b. High unemployment.
  c. Over half of the labor force in agriculture.
  d. Low savings and investment rates.
  e. Low infant mortality rates.

QUESTION 2

If the marginal propensity to consume (MPC) is 0.80, the value of the spending multiplier is 2.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

__________ plus __________ plus __________ equals ___________.
 a. Total deposits, loans, required reserves, excess reserves.
  b. Loans, required reserves, excess reserves, total deposits.
  c. Required reserves, total deposits, excess reserves, loans.
  d. Excess reserves, loans, total deposits, required reserves.

QUESTION 4

Which of the following is not evidence of the lower standard of living among less-developed countries?
 a. High per capita real GDP.
  b. High percentage of households headed by females.
  c. High infant mortality rate.
  d. Low life expectancy.
  e. High birth rate.

QUESTION 5

The greater the marginal propensity to consume (MPC) in the economy, the greater the spending multiplier.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

If total deposits at Last Bank and Trust are 100 million, total loans are 70 million, and excess reserves are 20 million, then which of the following is the required reserve ratio?
 a. 70 percent.
  b. 30 percent.
  c. 20 percent.
  d. 10 percent.

QUESTION 7

What is the economic criterion most often used to compare living standards across countries?
 a. Real GDP growth.
  b. Unemployment rate.
  c. Incidence of AIDS.
  d. Rate of population growth.
  e. Real per capita GDP.

QUESTION 8

If firms increase their investment spending by 10 million, then the economy's equilibrium output rises by exactly 10 million.
 a. True
  b. False
  Indicate whether the statement is true or false