When describing the IMF broad country classification, the most accurate statement is that
A) most of the nations in Western Europe are considered emerging market economies.
B) the emerging market economies are countries that were, until the early 1990s, part of the Soviet Union or its satellites.
C) about 50 percent of the world's population live in the advanced economies and the other 50 percent live in the emerging market and developing economies.
D) most of the world's population lives in advanced economies.
E) the category with the greatest number of countries is the advanced economies.
Question 2
The multiplier-accelerator model
A) suggests that a downturn in real GDP will lead to a sharp fall in investment, which leads to further reductions in GDP through the multiplier.
B) emphasizes that current investment spending depends negatively on the expected future growth of GDP.
C) links investment spending to stock prices.
D) emphasizes the role of real interest rates and taxes.
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