One of the negative side effects of financial globalization is that national economic policies lack the discipline that they did in the past
Indicate whether the statement is true or false
FALSE
Explanation: In a sense, the globalization of financial markets imparts discipline to national economic policies.
You might also like to view...
During the expansion phase of the business cycle
A) employment decreases. B) unemployment increases. C) production increases. D) income decreases.
A change in the money supply can affect one or more of the components of spending and therefore shift the short-run aggregate supply (SRAS) curve
Indicate whether the statement is true or false
The introduction of a tariff will be expected to
A. reduce imports. B. increase the prices of exports but have no effect on the level of imports. C. reduce the prices of exports but have no effect on the level of imports. D. increase exports.
Refer to Figure 6.4. Suppose that the market is currently in equilibrium and the government decides to impose a maximum price equal to price A in the graph. How will the equilibrium quantity and price change as a result of the price ceiling?
A. It won't. The price ceiling is above the equilibrium, so the market stays at equilibrium. B. It will cause a shortage because at the price ceiling, the quantity demanded exceeds the quantity supplied. C. It will cause a surplus because at the price ceiling, the quantity demanded is below the quantity supplied. D. It won't. The price ceiling is below the equilibrium, so the market stays at equilibrium.