What do you think about international "Chapter 11"?
What will be an ideal response?
A formal procedure whereby a country can seek international legal authorization to temporarily stop paying its debt and then negotiate a settlement that gives it more time to repay, or in extreme cases, actually writes off part of its obligations. The answer is that such an idea is probably a good idea, but again more moral hazard.
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If an undervalued currency is allowed to float:
A) its value will depreciate. B) its quantity supplied in exchange for the other currency will decrease. C) its quantity demanded in exchange for the other currency will increase. D) its value will appreciate.
Real income is found by:
A. dividing nominal income by 70. B. multiplying nominal income by 1.03. C. dividing the price index (in hundredths) by nominal income. D. dividing nominal income by the price index (in hundredths).