Which of the following was NOT a cause or a characteristic of the 1994/95 Mexican peso crisis?
A) An overvalued exchange rate
B) An inflow of large foreign portfolio capital
C) The inability of the IMF, the world bank, and the NAFTA member countries (i.e., the United States and Canada) to predict the looming financial crisis
D) Shifts by the world capital markets toward more conservative and risk-averse investments because of interest and exchange rate movements around the world
E) High domestic investments with insufficient domestic savings
C
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Which of the following best describes supply-side economics?
A) Education affects the incentive to work, save, and invest and, therefore, aggregate supply. B) Tax rates, particularly marginal tax rates, affect the incentive to work, save, and invest and, therefore, aggregate supply. C) Labor productivity affects aggregate supply. D) Education affects labor productivity which affects aggregate supply.
Which indicator shows how well a regression line fits through the scatter of data points?
A) F-test B) R2 C) t-test D) Durbin-Watson test