What is seigniorage? What are the factors that determine whether a currency should emerge as the dominant reserve currency?
What will be an ideal response?
The difference between the exchange value and the cost of producing a money. Stability of value, size of domestic economy relative to international transactions.
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Dairy Swirls is a soft-serve ice cream chain with franchises located throughout the United States. Dairy Swirls' advertising ________ promote the benefits of eating Dairy Swirls and ________ highlight an individual Dairy Swirls location in Asheville, North Carolina.
A) will; will not B) will; will C) will not; will not D) will not; will
Among development economists, the big-push refers to
a. the traditional process of economic dualism that forces workers to move from low-wage to high-wage sectors b. an integrated network of government-sponsored and financed investments that are introduced to LDCs all at once c. the political instability in LDCs that puts pressure on existing governments to achieve economic goals d. a strategy of limiting international trade in LDCs in order to protect new industries e. a situation in which there are many economists competing for a limited number of jobs advising LDCs
Briefly explain how moral hazard contributed to the problems faced by Freddie Mac and Fannie Mae in the 2008 financial crisis.
What will be an ideal response?
Export promotion policies try to encourage firms to produce more of the products for which the country has a comparative advantage.
Answer the following statement true (T) or false (F)