A Pareto improvement
a. cannot take place unless a side payment is made
b. cannot take place unless a market is perfectly competitive
c. cannot occur unless both parties to a transaction enjoy positive net benefits
d. will increase the total net benefits available in a perfectly competitive market
e. occurs whenever the sum of market consumer surplus and market producer surplus is positive
D
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Citizens and investors in Argentina interpreted the government's fiscal stimulus response to the country's financial crisis as:
A. a bad sign and drastically increased their spending and investing as a result. B. a bad sign and drastically reduced their spending and investing as a result. C. a good sign and drastically increased their spending and investing as a result. D. a good sign and drastically reduced their spending and investing as a result.
Suppose Russia's inflation rate is 200% over one year but the inflation rate in Switzerland is only 2%. According to relative PPP, what should happen over the year to the Swiss franc's exchange rate against the Russian ruble?
What will be an ideal response?