A crisis caused by sudden capital flight
A) is easy to resolve with capital controls.
B) might be lessened if investor confidence can be increased.
C) has a clear and unique equilibrium outcome.
D) can be corrected through currency devaluation.
B
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The government proposes a tax on halogen light bulbs. Sellers will bear the entire burden of the tax if the
A) demand curve for halogen bulbs is vertical. B) demand curve is downward sloping and the supply curve is upward sloping. C) supply curve of halogen bulbs is horizontal. D) demand curve for halogen bulbs is horizontal.
Today John says, "I will start working out tomorrow." Yet as tomorrow arrives, he doesn't. This is an example of
A) time inconsistent preferences. B) time consistent preferences. C) exponential discounting. D) future-biased preferences.