All of the following are symptoms of definite and identifiable macroeconomic imbalances EXCEPT
A) large budget deficits.
B) an overvalued currency.
C) a current account deficit.
D) the discovery of emerging markets by financial investors who want to diversify their portfolios.
D
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The imperfect capital market justification for infant industry promotion
A) assumes that new industries will tend to have low profits. B) assumes that infant industries will soon mature. C) assumes that infant industries will be in products of comparative advantage. D) assumes that banks can allocate resources efficiently. E) assumes that developing country will reward the donor country.
If the market price falls from P0 to P1 in the above figure, then
A) a new equilibrium quantity is established. B) there is a shortage equal to the distance EF. C) there will be a further tendency for price to fall. D) there is a surplus of goods on the market equal to the distance Q1, Q2.