All of the following are symptoms of definite and indefinite macroeconomic imbalances EXCEPT
A) large budget deficits.
B) an overvalued currency.
C) a current account deficit.
D) the discovery of emerging markets by financial investors who want to diversify their portfolios.
E) inflationary pressures.
D
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If demand is perfectly elastic, the absolute value of the price elasticity coefficient is
A) one. B) infinity. C) zero. D) equal to the absolute value of the slope of the demand curve.
The opportunity cost of holding excess reserves is the federal funds rate
A) minus the discount rate. B) plus the discount rate. C) plus the interest rate paid on excess reserves. D) minus the interest rate paid on excess reserves.
A holdup problem occurs
A) when a financial institution undertakes too little investment in security. B) when one firm must make a specific investment and a second firm takes advantage of it. C) if the firm that moves second in a Stackelberg game chooses the incorrect output level. D) if you are entering into a contract with a government entity.
If the real, risk-free interest rate in the Euro-Area rises the:
a. Supply curve of real loanable funds in the Euro-area rises. b. Supply curve of real loanable funds in the Euro-area falls. c. Demand curve for real loanable funds in the Euro-area rises. d. None of the above.