A financial crisis brought on by macroeconomic imbalances
A) is usually inevitable given underlying conditions.
B) often happens to countries with strong international positions.
C) is often preceded by capital inflows and an increase in foreign liabilities.
D) is usually the result of fragility in the banking sector.
A
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Suppose in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies
a. What is the opportunity cost of producing an auto body for the United States? b. What is the opportunity cost of producing an auto body for Canada? c. Which country has a comparative advantage in the production of auto bodies? d. Which country has a comparative advantage in the production of motor engines?
By spreading her investments out over many different assets, an investor achieves
A) a higher expected return. B) increased risk. C) diversification. D) greater liquidity.