The main policy advice given by the IMF to East Asian countries facing the financial crises of 1997/1998 was
A) raising their domestic interest rates to stabilize the collapsing currencies.
B) using their monetary and fiscal policies alone.
C) use capital controls.
D) adopting a flexible exchange rate system.
E) adopting a fixed exchange rate system.
A
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When a positive externality is present in a market, total surplus is:
A. higher when buyers only consider private costs. B. lower when buyers only consider private costs. C. lower when buyers consider social costs. D. None of these statements is true.
The highest-valued alternative that must be given up to engage in an activity.
What will be an ideal response?
Which broad field of economics would most likely study how consumers respond to a hike in cigarette taxes?
A. Marginal economics B. Monetary economics C. Microeconomics D. Macroeconomics
Refer to the given market-for-money diagrams. If the interest rate was at 8 percent, people would:
A. sell bonds, which would cause bond prices to fall and the interest rate to fall.
B. buy bonds, which would cause bond prices to rise and the interest rate to fall.
C. have insufficient liquidity, which would cause them to reduce their spending on consumer
goods.
D. buy bonds, which would cause bond prices to fall and the interest rate to rise.