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Debt-GDP ratios and economic crises: The debt-GDP ratio in Belgium exceeded 120% in the early 1990s and has fallen to just over 80% more recently. Italy had a debt-GDP ratio of about 100% even before the euro crisis. The rapid rise in Japan’s debt-GDP ratio was shown in Figure 18.4. Yet none of these economies experienced defaults or high inflation. In contrast, the debt-GDP ratio in Argentina peaked at 65% (up from 35% in 1996) and then a crisis struck, leading to default and other macroeconomic problems. How, broadly speaking, do we understand these very different outcomes?
Prove that every weighted average of three numbers x1
n open economy interacts with the rest of the world through its involvement in world markets for goods and services and world financial markets. Although it can often result i
One solution to the problem of gender imbalances in top careers is affirmative action give women extra consideration for top jobs, or equivalently penalize men. Explain the ef
Some kids wait until the school year begins to buy their back-to-school clothes so that they are sure to fit in. Such follow-the-leader behavior is an example of what the text
Utility function of Inzaghi is given as u(x, y) = 2x2y. His income is $m, to spend onconsumption of x and y. Assume that price of y is 3 times the price of x, i.e. Py = 3Px. S
A company is planning a plant expansion that is expected to cost $10 million. How much must the company set aside now in a lumps-sum investment to have the money in 2 years? C
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More people in high-income countries than in low-income countries tend to believe that rapid rates of economic growth are not desirable. Which of the following best explains w
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