Capital flight
A) increases reserves.
B) is never associated with the expectation of devaluation.
C) may undo expected devaluation.
D) reduces losses during a devaluation scare.
E) decreases reserves and may induce devaluation.
E
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Which of the following is true?
a. People who invest in the stock market are virtually certain to make money. b. Investors in the stock market can reduce their risk if they hold shares of specific stocks for only short periods of time. c. The risk of stock market investments can be reduced through the holding of a diverse portfolio of unrelated stocks over long periods of time. d. In the long run, corporate bonds can be expected to yield a higher real rate of return than ownership of stocks.
Coordination problems have led to the failure of command systems. Which of the following best exemplifies this problem?
A. Command economies try to minimize the use of capital goods, making production less efficient. B. Managers had no incentive to address market surpluses or shortages, as long as they met production goals. C. Workers were not motivated to work hard because of a lack of consumer goods to purchase. D. The complexity of production processes made it difficult to assure that all necessary inputs were provided at the right time and in the right amount.