What is meant by petrodollar recycling? Explain the mechanism by which this phenomenon occurred. What were the consequences of this phenomenon for developing countries?
What will be an ideal response?
Explained in the section 13.4 "Origins of the 1980s Debt Crisis."
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Compared to the GDP deflator, the consumer price index measures:
A) the price of all the goods and services produced in the economy. B) the price of a fixed market basket of goods and services. C) the price of exported goods and services. D) the price of wholesale goods and services.
Which of the following is correct?
a. Keynesians believe there is a direct link between changes in a nation's money supply and changes in expenditures. b. Monetarists believe there is an indirect link between changes in a nation's money supply and changes in expenditures. c. Monetarists believe there is a direct link between changes in a nation's money supply and changes in expenditures. d. Monetarists believe there is no short-term link between changes in a nation's money supply and changes in expenditures. e. Keynesians believe there is no short-term link between changes in a nation's money supply and changes in expenditures.
Under the Bretton Woods agreements,
A. the IMF was created to punish countries that did not maintain fixed exchange rates. B. a system of fixed exchange rates based on gold was established. C. each country agreed to buy and sell its currency to maintain a fixed exchange rate. D. All of the above are correct.
If demand increases and supply decreases, the change in the equilibrium price will be ________, and the change in the equilibrium quantity will be ________.
A. positive; negative B. positive; positive C. uncertain; positive D. positive; uncertain