One Possible Way of Achieving Faster Economic Growth Is to

question 251

Multiple Choice

One possible way of achieving faster economic growth is to

• A)limit international trade.
• B)encourage international trade.
• C)limit research and development and concentrate on production of goods and services.
• D)abolish the system of patents and copyrights so that everyone can use people's ideas.
• E)let the government decide what research and development should be undertaken.

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Definitions:

Excess Reserves

Banks' reserves that exceed the minimum required by the central bank, available for lending or investment.

Interest Rate

The price, expressed as a percentage of the principal, that a borrower must pay a lender for the use of funds.

Excess Reserves

are bank reserves held in excess of what is required by the central bank, which can be lent out to earn interest.

Money Expansion Process

The increase in the total amount of money in circulation or in the money supply, facilitated by mechanisms such as lower interest rates or quantitative easing.