Currency crises may result from
A) central bank balance sheets with higher liabilities than assets.
B) political upheaval leading to lowering exports.
C) a reconfiguration of central bank balance sheets.
D) speculative attacks on the currency or central banks purchasing excessive amounts of government bonds.
E) depreciation of foreign reserves.
D
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Over the past 10 years, the average growth rate in real GDP has been 2 to 3 times greater in India than in the United States. What does this indicate about the difference in the level of income in India and the United States over the past 10 years
What will be an ideal response?
Approximately two decades after a "baby boom," one could expect: a. production to change from an interior point to a point along the production possibilities curve. b. a movement along the production possibilities curve from one point to another
c. an outward shift of the production possibilities curve along both axes. d. an inward shift of the production possibilities curve.
Normally, to the extent that a governmental control mechanism succeeds in affecting price, it can be expected to lead to a corresponding
a. reduction in the volume of sales only if the price is forced down. b. reduction in the volume of sales if the price is forced down and an increase in the volume of sales if the price is forced up. c. decrease in the volume of sales whether the price is forced up or down. d. increase in the volume of sales whether the price is forced up or down.
Suppose disposable income increases from $5 trillion to $6 trillion. As a result, consumption expenditure increases from $4 trillion to ________. This result means the MPC equals ______.
A. $4.5 trillion; 4.50 B. $5 trillion; 0.80 C. $4.8 trillion; 0.80 D. $6 trillion; 1.00