In most of the financial crises of the last decade, there were large and sudden financial outflows as both home and foreign investors tried to avoid the expected crises
Indicate whether the statement is true or false
TRUE
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What was not one of the causes of hardship for Southern agricultural products in the immediate post-Civil War period (1870-1890)?
a. Increased infestation by boll weevils and other insects. b. Significant withdrawal of women and children from the fields. c. Increased competition from new cotton producers in other areas of the world. d. The loss of the plantation system.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Which of the following is not an example of the efforts to reduce the adverse selection problem?
A. Sellers offer warranties. B. Consumers invest in information. C. Sellers offer money-back guarantees. D. All of these are examples of efforts to reduce adverse selection.
Use the following table to answer the next question.Interest RateAsset Demand for Money (billions)7%$0610052004300If the money supply equals $300 billion dollars and the transaction demand for money equals $200 billion dollars, the equilibrium interest rate is
A. 6%. B. 7%. C. 4%. D. 5%.