This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The Great Depression that started in 1929 was A) confined only to the United States. B) confined ... (Read 84 times)

PhilipSeeMore

  • Hero Member
  • *****
  • Posts: 561
on: Jun 30, 2018
The Great Depression that started in 1929 was
 
  A) confined only to the United States.
  B) confined only to the United States and Britain.
  C) confined only to the United States and Europe.
  D) a global phenomenon.
  E) confined only to the Americas.

Question 2

Use a figure to study the following question: Imagine that the economy is at a point on the DD-AA schedule that is above both AA and DD, where both the output and asset markets are out of equilibrium. Explain what will happen next.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joanwhite

  • Sr. Member
  • ****
  • Posts: 308
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

Since the asset market adjusts very quickly, the exchange rate drops immediately to a point on the AA schedule. There will be excess demand for the domestic currency because the high expected future appreciation rate of the domestic currency implies that the expected domestic currency return on foreign deposits is below that on domestic deposits. This excess demand leads to an immediate fall in the exchange rate.
The figure:


PhilipSeeMore

  • Member
  • Posts: 561
Reply 2 on: Jun 30, 2018
:D TYSM

mcabuhat

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

A small sample of the great diversity of seed sizes and shapes. A small sample of the great diversity of seed sizes and shapes.
Prevalence of Obesity in the United States Prevalence of Obesity in the United States
Guide to Major Massage Therapy Organizations in the United States* Guide to Major Massage Therapy Organizations in the United States*
Importance of intermediate states Importance of intermediate states
Columns With Papyriform And Bud Capitals, Hypostyle Hall, Great Temple Of Amun At Karnak Columns With Papyriform And Bud Capitals, Hypostyle Hall, Great Temple Of Amun At Karnak
Created Equal: A Social and Political History of the United States, Brief Edition Created Equal: A Social and Political History of the United States, Brief Edition
Video: Red alga life cycle Animation

For a complete list of videos, visit our video library