Explain why the U.S. crisis became a world crisis
What will be an ideal response?
Other countries were affected through two channels. The first channel was trade. As U.S. consumers and firms cut spending, part of the decrease fell on imports of foreign goods. The second channel was financial. U.S. banks, badly needing funds in the United States, repatriated from other countries, creating problems for banks in those countries. The result was not just a U.S., but a world recession.
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If the quantity demanded exceeds the quantity supplied, then there is
A) a shortage and the price is below the equilibrium price. B) a shortage and the price is above the equilibrium price. C) a surplus and the price is below the equilibrium price. D) a surplus and the price is above the equilibrium price.
The larger the number tasks and the greater the authority required in a job, then the evaluation of the person in the job will move from ________ to ________.
A. objective; risk based B. subjective; risk based C. subjective; objective D. objective; subjective
Keynes argued that
a. irrational waves of pessimism cause decreases in aggregate demand and increases in unemployment. b. irrational waves of optimism cause decreases in aggregate demand and decreases in aggregate supply. c. changes in business and consumer expectations generally stabilize the economy. d. All of the above are correct.
An MNE would most likely benefit from converting local currency into its home-country currency when exchange rates are most favorable so it can maximize its return.
a. true b. false