What economic variables would you need to consider in order to distinguish between a developing country with a short-term balance of payments problem and one in a debt crisis? Explain what data you would need to look at and why
What will be an ideal response?
Look for an understanding that investment in exportable goods must increase above trend during borrowing to provide foreign exchange earnings sufficient to repay the debt without a drop in the standard of living.
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"For goods that are unrelated in consumption, efficiency requires that tax rates be inversely proportional to elasticities." This is the definition of
A. the benefits-received principle. B. the Ramsey Rule. C. the second best principle. D. the inverse elasticity rule.
In 1900, the average life expectancy in the U.S. was:
a. 32 b. 47 c. 60 d. 68
Derivatives:
a. can be used to reduce risk b. can be a source of risk c. made the financial crisis of 2007-2009 not as bad as it would otherwise have been d. a and b only e. all of these
What is true about government budget deficits and surpluses since 1940?
A) There have been more government budget surpluses than government budget deficits.
B) The number of government budget deficits is about the same as the number of government budget surpluses.
C) Balanced budgets have been more common than government budget deficits or government budget surpluses.
D) There have been more government budget deficits than government budget surpluses.