Which one of the following must a central bank must be concerned about driving most of the country’s existing banks into bankruptcy?
a. a large and unexpected exchange rate appreciation
b. a large and unexpected interest rate increase
c. a large and unexpected exchange rate depreciation
d. a large and unexpected increase in foreign investments
c. a large and unexpected exchange rate depreciation
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The deadweight loss represent the sum of added consumer and producer surplus if the firm would produce the quantity where P = MC
Indicate whether the statement is true or false
Economists believe that people's wants are
a. limited by their incomes b. insatiable c. scarce d. mostly irrational e. mostly psychological
The larger the marginal propensity to save,
A) the smaller the multiplier. B) the larger the multiplier. C) the smaller the change in Real GDP, given a change in autonomous consumption. D) a and c E) none of the above
What is the difference between the short run, long run and very long run?
What will be an ideal response?