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

Author Question: What event started the Asian financial crisis in 1997? A) Indonesia's inability to pay its debts ... (Read 102 times)

azncindy619

  • Hero Member
  • *****
  • Posts: 562
on: Jun 30, 2018
What event started the Asian financial crisis in 1997?
 
  A) Indonesia's inability to pay its debts
  B) devaluation of Indonesia's currency
  C) Thailand's inability to pay its debts
  D) devaluation of Thailand's currency
  E) devaluation of Malaysia's currency

Question 2

Demonstrate how a permanent fiscal expansion will not increase output in the long run.
 
  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

babybsemail

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

(1 ) E on Y-axis, Y on X-axis
(2 ) DD shifts right
(3 ) temporary equilibrium where E lower and Y increased
(4 ) permanent increase in demand caused by increase in G causes currency to appreciate: AA shifts left
(5 ) therefore Y returns to original levels, E decreases even more
RESULT of permanent fiscal expansion: currency appreciation, output does not change. This effect is called crowding out.


azncindy619

  • Member
  • Posts: 562
Reply 2 on: Jun 30, 2018
Excellent

jamesnevil303

  • Member
  • Posts: 337
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Difference between Asian (left) and African (right) elephant ears. Difference between Asian (left) and African (right) elephant ears.
Landbridge connections between continental Asia and Indonesia during glacial periods extend as far a Landbridge connections between continental Asia and Indonesia during glacial periods extend as far a
The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p
Tunguska Event Tunguska Event
Exploring Getting Started With Microsoft Windows 8 Exploring Getting Started With Microsoft Windows 8
Video: Methods that regulate pH

For a complete list of videos, visit our video library