When it became known in 1997 that the Thai government had insufficient foreign exchange reserves to maintain the exchange rate, how did currency speculators respond? What policy did the IMF suggest?
What will be an ideal response?
Currency speculators began massive selling of the Thai currency, baht, which in turn depreciated further. The IMF suggested the central bank of Thailand undertake a contractionary monetary policy in order to raise interest rates and attract foreign investment.
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The increase in output that results when one more unit of a variable input is hired is called
A) total physical product. B) marginal physical product. C) average physical product. D) marginal revenue.
If U.S. imports total $100 billion and exports total $150 billion, which of the following would be true?
a. U.S. net exports equal -$50 billion. b. The U.S. has a trade surplus of $50 billion. c. The U.S. has a trade deficit of $100 billion. d. The U.S. has a trade deficit of $50 billion. e. The U.S. has a trade surplus of $150 billion.
Which of the following is true?
a. The price charged by a monopolistically competitive firm is equal to that charged by a perfectly competitive firm. b. The price charged by a monopolistically competitive firm is less than that charged by a perfectly competitive firm. c. The output produced by a monopolistically competitive firm is more than that produced by a perfectly competitive firm. d. The output produced by a monopolistically competitive firm is equal to that produced by a perfectly competitive firm.
The supply function for good X is given by Qxs = 1,000 + PX - 5PY - 2PW, where PX is the price of X, PY is the price of good Y and PW is the price of input W. If PX = 100, PY = 150, PW = 50, then the supply curve is
A. Qxs = 150 + Px. B. Qxs = 550 + Px. C. Qxs = 350 + Px. D. Qxs = 550.