Which of the following is a true statement about crises caused by volatile capital flows?
A) Volatile capital flows rarely cause contagion effects.
B) Technological advances have increased the volatility of capital flows.
C) Exchange rates appreciate when there are capital outflows.
D) Budget deficits decrease when there are capital outflows.
B
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Which of the following changes in the aggregate demand and aggregate supply curves in likely to result in stagflation?
A) The aggregate demand curve shifts to the left when the economy is in the classical range of the aggregate supply curve B) The aggregate demand curve shifts to the right in classical range C) The aggregate demand curve shifts to the right when the economy is in the Keynesian range of the aggregate supply curve D) The aggregate supply curve shifts left E) The aggregate supply curve shifts right
The U.S. economic data for the last 50 years indicates that
A) there is an inverse relationship between unemployment rate and inflation rate. B) there is a direct relationship between unemployment rate and inflation rate. C) during recessions the unemployment rate was always twice as high as the inflation rate. D) there has been no long-run relationship between unemployment and inflation rates.