State the case for and the case against currency bailouts.
What will be an ideal response?
The case for a currency bailout rests on the idea that weakness in one currency can undermine others, creating a domino effect. Critics of bailouts argue that they are ultimately self-defeating because a country that knows that it will receive a bailout is less likely to pursue unpopular policy adjustments (such as high interest rates, tax hikes, government spending cuts, lower trade barriers, regulation of monopoly power, or tighter lending policies) that might stabilize its currency.
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Jonathan is currently enrolled in college full-time; however, he works part-time at a restaurant on weekends to earn some spending cash. Jonathan would be considered:
a) unemployed b) employed c) not in the labor force d) institutionalized
Why did the slave-labor system probably cause a lag in Southern urban and industrial development?
(a) The slave system provided a weak market for goods because of the low income and consumption levels of slaves. (b) Side-effects of urbanization and industrialization, such as slave flight and greater freedom, were threatening to Southern owners. (c) The South's slave society culture was resistant to manufacturing and urbanization. (d) All of the above apply.