The use of foreign money instead of domestic money when the domestic economy has a high rate of inflation is called _____
a. currency depreciation
b. currency substitution
c. capital flight
d. currency devaluation
e. currency trade
b
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The text states that the Herfindahl-Hirschman Index (HHI) for electronic computers is 680, while the HHI for chocolate is 2,188 . We can interpret this to mean that
a. people buy more chocolate than computers b. the price of computers is higher than the price of chocolate c. the demand for computers is relatively more inelastic than the demand for chocolate d. market power is more heavily concentrated in the chocolate market than in the computer market e. computers are more of a necessity than chocolate
If loans are $300,000 . demand deposits are $600,000 . and the legal reserve requirement is 40 percent, then excess reserves are
a. $360,000 b. $240,000 c. $120,000 d. $60,000 e. $30,000