The Mexican peso crisis of 1994 and 1995 was directly related to
A) a large capital account surplus.
B) a large capital account deficit.
C) an undervalued peso.
D) a large current account surplus.
A
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Based on Figure 3.2, it can be inferred that:
A) Alvin does not consider good X as "good." B) Alvin will never purchase any of good Y. C) Alvin regards good X and good Y as perfect substitutes. D) Alvin regards good X and good Y as perfect complements. E) none of the above
Which of the following is TRUE of the European Union's cap-and-trade program?
A) Firms are taxed based on the their pollution levels. B) Firms are forced to shut down when they exceed their pollution limits. C) Governments subsidize firms to develop devices to reduce pollution. D) Firms can trade pollution permits to meet their pollution limits.
When the Fed buys government securities, it:
a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public. b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public. c. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public. d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public. e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
Realistically, the impact of the multiplier is _______ the oversimplified multiplier formula.
A. lower than B. greater than C. equal to D. higher if taxes are included.