A nation's economic growth is more rapid when
A) special interest groups acquire the political power to restrict competition.
B) capital resources are devoted to their most efficient use.
C) there are barriers to establishing legal ownership of capital resources.
D) scarce resources are made available for all citizens free of charge.
Question 2
If the Fed purchases U.S. government securities in the open market, all of the following would occur EXCEPT
A) an expansion of the money supply.
B) an increase in investment.
C) a fall in bond prices.
D) an increase in real Gross Domestic Product (GDP).
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