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cdsuavet cdsuavet
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6 years ago
If governments promise to bail out the financial system in the event of a crisis, this creates a moral hazard problem. Describe this problem.
 
  What will be an ideal response?


Question 2 - In the United States, which agency determines whether domestic firms have been harmed by subsidies and dumping or by a sudden surge in imports and whether protection is warranted?
 
  What will be an ideal response?


Question 3 - If the exchange rate is equal to the ratio of the domestic and foreign price indexes,
 
  A) absolute PPP holds.
  B) relative PPP holds.
  C) one currency is said to be overvalued.
  D) one currency is said to be undervalued.
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BetardsamereBetardsamere
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6 years ago
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cdsuavet Author
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#2
6 years ago
Good timing, thanks!
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