Firms in Thailand that had ________ while the baht was pegged to ...

[kwoodring]

Firms in Thailand that had ________ while the baht was pegged to the dollar faced interest payments that were higher than they had planned once the Thai government abandoned the peg because the baht had been pegged ________ the equilibrium exchange
 
  rate for the baht.
  A) borrowed dollars; above B) borrowed baht; above
  C) borrowed baht; below D) borrowed dollars; below

Question 2

What is meant by empiricism? How do empiricists use hypotheses?
 
  What will be an ideal response?

[31809pancho]

Answer to Question 1

A

Answer to Question 2

Empirical evidence is a set of facts established by observation and measurement, which are used to evaluate a model. Empiricism refers to the practice of using data to test economic models. When conducting empirical analysis, economists refer to a model's predictions as hypotheses. Hypotheses are predictions (typically generated by a model) that can be tested with data.