Which of the following is a true statement about crises caused by volatile capital flows?
A) Volatile capital flows rarely cause contagion effects.
B) Technological advances have increased the volatility of capital flows.
C) Exchange rates appreciate when there are capital outflows.
D) Budget deficits decrease when there are capital outflows.
B
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The process of supply and demand
A) guarantees shortages or surpluses will never exist. B) guarantees the greatest amount of social happiness. C) ensures that people will be able to obtain all that they need. D) generates useful information regarding the relative scarcities of goods and services. E) accomplishes all of the above.
An increase in demand is reflected as a rightward (outward) shift of the demand curve and is caused by an increase in price
a. True b. False Indicate whether the statement is true or false
A headline reads "Lumber Prices Up Sharply." In a competitive market, this situation would lead to a(n):
a. Increase in the price of new homes and decrease in quantity b. Decrease in the price of new homes and increase in quantity c. Decrease in the price and quantity of new homes d. Increase in the price and quantity of new homes
which of the following is NOT a part of the monetary base
What will be an ideal response?