Explain how Brazil was able to reduce the rate of inflation from 2,669 percent in 1994 to less than 10 percent in 1997?
What will be an ideal response?
By introducing a new currency and initially pegging it to the dollar. At the cost of widespread bank failures, high interest rates in 1995 and the shift to a fixed upwardly crawling peg and a substantial real appreciation of the local currency.
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Refer to the figure above. Calculate the total surplus in Lithasia under free trade
A) $150 B) $250 C) $325 D) $375
The ease and quickness with which an asset can be exchanged for goods, services, or other assets is its
A) risk. B) time to maturity. C) velocity. D) liquidity.
The cross price elasticity for Papa John's pizza for a change in the price of Pizza Hut pizza is likely to be
A. negative but less negative than -1. B. negative and more negative than -1. C. zero. D. positive.
Economic profits at the short-run break-even point are
A) positive. B) negative. C) equal to zero. D) indeterminate since they also depend on the size of the fixed costs.