Unsustainable debt may occur for all of the following reasons EXCEPT
A) when countries are dependent on one or two key export commodities, and there is a sudden drop in the price of those commodities.
B) when natural disasters occur.
C) when civil conflicts are resolved and a peace dividend occurs.
D) when there are corrupt politicians and practices.
C
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Which of the following statements is FALSE?
A. Included in the firm's short-run production function are both fixed and variable inputs. B. An efficient firm can obtain more output than the production function shows. C. The production function shows the technical relationship between a firm's inputs and outputs. D. The production function presents the technically efficient methods of combining inputs to produce output.
The non-activists believe that
A) the government has been a stabilizing force in the economy. B) much of the existing unemployment voluntary. C) the velocity of money is unstable. D) policymakers are able to accurately forecast the future effect of current policy actions.
How might the increase in the natural rate of unemployment in Europe be related to the increase in income inequality in the United States?
What will be an ideal response?
If the exchange rate is defined as the price of the foreign currency in terms of the domestic currency, an increase in the exchange rate:
a. increases domestic demand for foreign goods. b. makes domestic goods cheaper in the foreign markets. c. lowers net exports. d. lowers aggregate expenditure on domestic goods. e. increases the domestic country's external debt burden.