Which one of the following must a central bank must be concerned about driving most of the country’s existing banks into bankruptcy?
a. a large and unexpected exchange rate appreciation
b. a large and unexpected interest rate increase
c. a large and unexpected exchange rate depreciation
d. a large and unexpected increase in foreign investments
c. a large and unexpected exchange rate depreciation
Economics
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Define the term "import."
What will be an ideal response?
Economics
The CPI overstates inflation because the average consumer buys
A) less of those goods whose relative price has risen. B) more of those goods whose relative price has risen. C) lower quality goods if they have a choice. D) the same basket of goods every week. E) a generally random assortment of goods and services each week because what is purchased depends on what the consumer needs.
Economics