What is known as the Dutch disease?
a. The problem that arises when a government cannot meet its foreign debts
b. The phenomenon of a boom in one industry causing declines in the rest of the economy
c. A sudden and unexpected devaluation of a currency as a consequence of policy controls
d. The problem that arises when high imports force an economy to borrow from external sources
e. A deficit in the balance of payments of the economy that arises due to a sudden appreciation of the domestic currency
b
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In 2007 the real interest rate in the United States was 2 percent. By 2013, the equilibrium real interest in the United States was ________ because the ________
A) 0.5 percent; United States experienced a deep recession as a result of a financial crisis in 2008-2009 B) 0.5 percent; United States began to recover from the deep recession and financial crisis of 2008-2009 C) 3.5 percent; United States began to recover from the deep recession and financial crisis of 2008-2009 D) 3.5 percent; United States experienced a deep recession as a result of a financial crisis in 2008-2009 E) not yet calculated; effects of the financial crisis of 2008-2009 have not yet been tallied The figure above shows the demand for loanable funds curve.
Refer to Table 9-14. The percentage change in real average earnings from 1965 to 2010 equals
A) 2.0 percent. B) 19.7 percent. C) 24.6 percent. D) 80.3 percent.