Two goods are perfect complements when a person only cares about consuming both of them in a specific proportion

The aggregate demand–aggregate supply model shows that closing an expansionary gap involves deflation and closing a recessionary gap involves inflation

a. True b. False Indicate whether the statement is true or false

Which one of the following must a central bank must be concerned about driving most of the country’s existing banks into bankruptcy?

a. a large and unexpected exchange rate appreciation b. a large and unexpected interest rate increase c. a large and unexpected exchange rate depreciation d. a large and unexpected increase in foreign investments