Unlike a banking crisis, an exchange rate crisis rarely results in a deep recession
Indicate whether the statement is true or false
FALSE
You might also like to view...
People in other countries want to hold U.S. dollars as a
A) medium of exchange. B) store of value. C) unit of account. D) standard of deferred payment.
The rate of production at which marginal revenue equals marginal cost is
A) a point of negative profits for the firm. B) what determines the equilibrium price in the market. C) the firm's shutdown point. D) the point where profits are maximized.
Suppose the equilibrium price of bread is $2.00 per loaf. If the government sets a price ceiling of $1.50 per loaf: a. the equilibrium price of wheat will fall and a shortage of wheat will be created. b. the quantity of wheat supplied will increase
c. the quantity of wheat demanded will decrease. d. there will be a shortage of bread.
If Sam, a farmer in 1963, finds that he needs two bushels of corn to buy what his grandfather bought with one bushel during the 1910–1914 benchmark period, then
a. Sam is twice as well off in 1963 than his grandfather was b. farm productivity has declined by half over this period c. the equilibrium price of corn has obviously doubled d. a price floor that doubles the 1963 market price creates full parity in 1963 e. Sam will have to leave the farm