According to the text, if individuals base their expectations on economic models, we say that their expectations are:

Explain what is meant by a devaluation of a currency. Under what circumstances would a country devalue its currency?

What will be an ideal response?

Economic growth is likely to be faster when

a. higher tax rates are imposed on high income individuals in order to provide greater cash payments to the poor. b. domestic markets are opened to foreign sellers and foreign investors. c. the supply of money is increased rapidly so individuals have more money to spend. d. dramatic changes in political and legal institutions occur often.