What happened to the peso when the Argentine government succumbed to the market forces in 2002?

An efficient allocation of resources is reached in the figure above when output equals

A) 1 million. B) 2 million. C) 3 million. D) 4 million.

A one-year bond has an interest rate of 5% today. Investors expect that in one year, a one year bond will have an interest rate equal to 7%

According to the expectations theory of the term structure of interest rates, in equilibrium, a two-year bond today will have an interest rate equal to A) 3.0%. B) 5.0%. C) 5.5%. D) 6.0%.