IMF advice to countries such as Russia and Argentina that suffer from exchange rates crises often requires these countries to adopt
A. fixed exchange rates.
B. expansionary monetary policies.
C. contractionary monetary policies.
D. state ownership of industry.
Answer: C
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In the specific factors model, a 5% increase in the price of food accompanied by a 1% increase in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in
the welfare of the fixed factor in the production of cloth. A) an ambiguous change; an increase; a decrease B) an ambiguous change; a decrease; an increase C) an ambiguous change; an ambiguous change; an ambiguous change D) a decrease; an ambiguous change; an ambiguous change E) an increase; a decrease; an increase
A customs union is an organization of nations whose members:
a. have impenetrable trade barriers among themselves but impose no trade barriers on nonmembers. b. have no trade barriers among themselves but impose common trade barriers on nonmembers. c. have no trade barriers among themselves but each member country chooses its own trade policies with nonmember countries. d. retaliate each other by raising reciprocal tariffs and calling for fair trade. e. neither have trade barriers among themselves nor impose any restriction on the nonmember countries.
If national income increases by $20 million and consumption increases by $5 million, the marginal propensity is consume is
What will be an ideal response?
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.