According to your authors, the "boom-bust" cycle is primarily caused by
A) government tax and spend policies.
B) an artificial lowering of interest rates through expansionary monetary policy.
C) waves of irrational optimism and pessimism in the business community.
D) a clash of interests among capitalists and laborers.
B
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"Even under flexible exchange rate regime, governments could not be indifferent to the behavior of exchange rates and inevitably surrendered some of their policy autonomy in other areas to prevent exchange rate movements they viewed as harmful to
their economies." Discuss.
Refer to the information provided in Figure 6.13 below to answer the question(s) that follow.
Figure 6.13Refer to Figure 6.13. Assume Megan has two products available, pizza and hamburgers. Megan must be compensated with more hamburgers as she gives up more pizzas. The curve in Panel ________ represents her indifference curve.
A. A B. B C. C D. D