The severity of the 2007-2009 recession was due to the severity of the accompanying financial crisis. Explain what is meant by financial crisis
What will be an ideal response?
A financial crisis involves a significant disruption in the flow of funds from lenders to borrowers.
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A decrease in expected returns on investment will most likely shift the AD curve to the ________.
A. right because Ig will increase B. left because C will decrease C. left because Ig will decrease D. right because C will increase
The long-run market supply curve in the presence of internal economies of scale is ________, and in the presence of external economies of scale, it is ________
A) downward sloping; downward sloping B) upward sloping; horizontal C) horizontal; upward sloping D) downward sloping; horizontal E) upward sloping; downward sloping
An increase in Mexican incomes will have what effect on the foreign exchange market for Mexican pesos?
a. shift demand to the left b. shift demand to the right c. no effect d. shift supply to the left e. shift supply to the right
What is the value of the intra-industry trade index for an industry in which exports are $100 million and imports are $100 million?
a. 100/200 = 0.50 b. (100 + 100)/100 = 2.00 c. 100/[1/2 × (100 + 100)] = 1.00 d. (100 - 100)/100 = 0.00