A capital ________ can promote financial instability in an emerging-market country because it can lead to a lending boom and excessive risk-taking on the part of banks, which helps trigger a ________
A) inflow; financial crisis
B) inflow; currency devaluation
C) outflow; financial crisis
D) outflow; currency devaluation
A
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Right or wrong, using the expenditure approach to GDP will show a net increase in GDP because of the 2005 Hurricanes
a. True b. False
Economists speaking like scientists make
a. positive statements. b. prescriptive statements. c. claims about how the world should be. d. More than one of the above is correct.
A principal objective of the World Trade Organization is to
A. Protect import-competing producers. B. Assist in retraining workers displaced by imports. C. Reduce barriers to trade. D. Equalize income tax structures in various countries.
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.