Which of the Following Was NOT a Result of the Discovery

question 19

Multiple Choice

Which of the following was NOT a result of the discovery of large oil reserves in Mexico during the 1970s?

• A) These reserves allowed the government to embark upon substantial investment programs  in virtually all sectors of the Mexican economy.
• B) These reserves allowed Mexico to finance initiatives to reduce poverty and halt declining agricultural productivity.
• C) These reserves allowed the government to address, at least initially, some of the problems brought about by import substitution industrialization.
• D) These reserves resulted in Mexico becoming increasingly vulnerable to international economic fluctuations in the demand for and price of oil.
• E) These reserves increased the power of privileged interest groups in Mexico and their ability to influence government policy.

Apply time value of money concepts to evaluate different financial decisions.

Calculate the duration of loans and savings plans.

Calculate the term of an ordinary annuity in years and months.

Determine the financial impact of additional payments towards a mortgage including interest savings and term reduction.

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Definitions:

Fiscal Policy

Government policies regarding taxation and spending that are employed to influence economic conditions, including stimulating or restraining economic growth.

Multiplier

An economic factor that quantifies the additional effect on income or output resulting from an injection of spending.

Deflationary Gap

A situation in economics where actual production is lower than the potential output level, often resulting in unemployment and unused productive capacity.

Equilibrium GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand in an economy.