The notion that, following a devaluation, the BOT falls for a while before increasing is called a ________ effect
A) relative price
B) elasticity
C) J-curve
D) pass-through
C
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If the government of a developing country is having difficulty selling bonds to build an irrigation system, it could go to the
A) United Nations International Bank. B) World Bank. C) International Monetary Organization. D) Federal Reserve Bank.
When a good ends up overconsumed and depleted, we can assume it is a:
A. scarce good. B. common resource. C. public good. D. private good.
If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 5, potential output (Y*) equals 11,000, then government purchases must ________ to eliminate any output gap.
A. increase by 200 B. increase by 1,000 C. decrease by 200 D. increase by 5,000
The absolute value of the elasticity of demand for a "necessity" good with few close substitutes is:
a. Equal to 0. b. Less than 1. c. Greater than 1. d. Equal to 1.