If a currency rapidly depreciates, what are the possible negative results to the economy of using contractionary monetary policy to address the depreciation?

What will be an ideal response?


National income falls and perhaps the economy goes into a recession.

Economics

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In a competitive market the ________ curve shows the marginal benefit received by consumers and the ________ curve shows the marginal cost to producers

A) demand; market demand B) supply; demand C) supply; market supply D) demand; supply

Economics

A krone/euro peg alone is

A) not enough to provide automatic stability in the face of any monetary shocks that shift the AA schedule. B) enough to provide automatic stability in the face of any monetary shocks that shift the AA schedule. C) not enough to provide automatic stability in the face of any monetary shocks that shift the AA schedule, provided fiscal policy will be used as well. D) enough to provide automatic stability in the face of any monetary shocks that shift the AA schedule, provided the government runs a budget deficit. E) enough to provide partial stability in the face of smaller monetary shocks that shift the AA schedule.

Economics

Briefly and concisely define the following terms:

a. statistical discrimination b. compensating wage differential c. affirmative action

Economics

Some people attribute the rapid growth of the East Asian economies in the 1980s and 1990s to the:

A. governments planning for growth by investing in certain industries. B. governments picking industries to support with investments and favorable tax and trade policies. C. success of their "industrial policies." D. All of these are true.

Economics