What lessons from Latin American capital-market crises might have been useful to prevent, or at least minimize, the East Asian crisis?
What will be an ideal response?
Lessons might have included the need for strong prudential regulation of financial institutions, more flexible exchange rate arrangements, and stricter conditions on the borrowing of favored enterprises.
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If a 4 percent rise in the price of peanut butter lowers the total revenue received by the producers of peanut butter by 4 percent, the demand for peanut butter
A) is elastic. B) is inelastic. C) is unit elastic. D) has an elasticity of 2.0.
One reason China has been able to grow so rapidly even though its financial development is still in its early stages is
A) the high savings rate of around 40%. B) the shift of labor to the agricultural sector. C) the stringent enforcement of financial contracts. D) the ease of obtaining high-quality information about creditors.
Medicare and Social Security are examples of
A) transfer payments. B) public goods. C) programs that do not respond to rational economic incentives. D) a free market system.
If the price of action figures was $12.00 each, his consumer surplus would be
Table-Demand and Utility Table for action figures
A. $2.
B. $4.
C. $12.
D. $14.