According to the adaptive expectations theory, after many years of rising prices, people tend to ignore past experience in predicting the future rate of inflation

Define the official settlements balance. Is there any difference between the United States and other countries in terms of what this balance measures? How does this affect the ability of the countries to run current account deficits?

What will be an ideal response?

In the above figure, over the price range P1P2, demand is

A) unit elastic. B) elastic. C) inelastic. D) perfectly elastic.