In the case of Thailand in 1997, the Thai government was running a large:
A) current account surplus, requiring capital inflows from abroad.
B) current account deficit, requiring capital inflows from abroad.
C) current account surplus, requiring capital outflows.
D) current account deficit, requiring capital outflows.
B
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Ceteris paribus, if the market demand for a product increases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. increase; indeterminate b. decrease; decrease c. indeterminate; decrease d. increase; increase
New York City Police recommended steps the bank could take to deter robberies, including the installation of plastic barriers called “bandit barriers.” The police were surprised the bank did not take their advice. According to a deputy commissioner of police, “Commerce does very little of what we recommend. They’ve told our detectives they have no interest in ever putting in the barriers.” It would seem that Commerce Bank would have a strong incentive to install “bandit barriers” to deter robberies. Why wouldn’t they do it?
a. The banks probably resent any interference from the police department. b. The banks are concerned that “bandit barriers” would send the wrong message to customers—that the bank is unsafe. c. The banks must have weighed the cost of installing bandit barriers against the bene ts and decided that they have “no interest in ever putting in the barriers.” d. The banks would rather delay the installation of any theft deterring equipment in anticipation of new lower-cost innovations in the security devices market.
Jai Li just lost her job, and she has not yet started looking for a new one. The Bureau of Labor Statistics counts Jai Li as
a. unemployed and in the labor force. b. unemployed but not in the labor force. c. in the labor force but not unemployed. d. neither in the labor force nor unemployed.
Most international investment finance today comes from
A. tax collections. B. portfolio and foreign direct investment. C. printing more money. D. government financing.