When it became known in 1997 that the Thai government had insufficient foreign exchange reserves to maintain the exchange rate, how did currency speculators respond? What policy did the IMF suggest?
What will be an ideal response?
Currency speculators began massive selling of the Thai currency, baht, which in turn depreciated further. The IMF suggested the central bank of Thailand undertake a contractionary monetary policy in order to raise interest rates and attract foreign investment.
Economics
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The willingness to pay for a commodity:
A) decreases as consumption of the commodity increases. B) increases as consumption of the commodity increases. C) is always less than the market price of the commodity. D) is always greater than the market price of the commodity.
Economics
How can managers of natural monopolies exaggerate their costs?
What will be an ideal response?
Economics