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Author Question: If a country has a collapsing currency due to large budget deficits financed by monetary expansion, ... (Read 198 times)

nummyann

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on: Jun 30, 2018
If a country has a collapsing currency due to large budget deficits financed by monetary expansion, the cure is to
 
  A) default on sovereign debt and restructure the economy.
  B) peg the currency to something different.
  C) cut the deficit and raise interest rates.
  D) increase the rate of inflation to reduce the real value of government debt.

Question 2

If countries have similar factor endowments and productivities, their trade is likely to be interindustry.
 
  Indicate whether the statement is true or false


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shayla

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

FALSE


nummyann

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

tanna.moeller

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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