A flexible exchange rate system crisis involves
A) a revaluation of the currency.
B) a rapid and uncontrolled depreciation of the currency.
C) a decrease in the dollar value of the country's international debt.
D) a sure political collapse of the ruling government.
B
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Which of the following will restore an economy to full employment, if it is operating below full employment due to a decrease in net exports?
A) A reduction in the investment in the economy B) A reduction in the demand for goods and services in the economy C) A decrease the real exchange rate D) An increase in the interest rate
When the cross-price elasticity of demand for two goods is a positive number, one can correctly conclude that:
a. the goods are normal goods. b. the goods are inferior goods. c. the goods are substitutes. d. the goods are complements. e. total revenue will increase when the price increases.
In 2012, government income transfers redistributed what percentage of national income?
a. 1.1 percent b. 7.7 percent c. 17.4 percent d. 25.5 percent
The 1993 recipient of the Nobel Prize in Economics, Douglass North is best known for his contributions in which area of economics?
What will be an ideal response?