A crisis caused by sudden capital flight
A) is easy to resolve with capital controls.
B) might be lessened if investor confidence can be increased.
C) has a clear and unique equilibrium outcome.
D) can be corrected through currency devaluation.
B
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When the Fed buys $100 million of securities from a commercial bank, the
A) monetary base increases. B) money supply decreases. C) bank's reserves decrease. D) required reserve ratio decreases. E) bank is risking its depositors' money.
If the price elasticity of demand for apples is greater than 1, an increase in apple prices will
A) raise total revenue. B) lower total revenue. C) not affect total revenue. D) either raise or lower total revenue, but it is impossible to determine which.
You have noticed that there is a persistent shortage of teachers in an inner-city school district in your state. Based on this observation, you suspect that:
A. there is an excess supply of teachers in other districts. B. the wage for teachers in that district is higher than the wage in other districts. C. the wage for teachers in that district is lower than the equilibrium wage. D. the demand for teachers in the inner-city school district is too low.
The price elasticity of demand for lettuce has been estimated to be 2.58. If an insect infestation destroys 10% of the nation's lettuce crop, how will that affect total revenue from lettuce, all other things unchanged?
A. Average costs will increase B. The average product will fall C. Average total costs will fall D. Total revenue will fall