"Trade liberalization should precede capital account liberalization." Discuss
What will be an ideal response?
The answer is probably true. The issue is related to the theory of second best and the proper sequence of reform measures. Of course, students may argue against such step-by-step measures.
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When agricultural production increases, the total amount paid for agricultural products tends to
a. increase because demand is price elastic b. decrease because demand is price elastic c. increase because demand is price inelastic d. decrease because demand is price inelastic e. remain constant because demand is price inelastic
If marginal product increases with an increase in the variable input, the marginal cost must also increase as more units of the input are hired
a. True b. False Indicate whether the statement is true or false
In the market for foreign-currency exchange, the source of the supply of dollars is _________. The supply curve is _________ because _____________
Fill in the blank(s) with correct word
What is meant by the term inflation bias?
A) when policymakers allow exchange rates to continually depreciate and are willing to accept higher rates of inflation B) when policymakers accept higher rates of inflation and are willing to allow exchange rates to continually depreciate C) when policy makers use expansionary monetary policy for short-term gain, at the expense of higher inflation in the longer run D) when fiscal policymakers use deficit financing to stimulate the economy at the expense of higher long-run inflation