Latest Questions & Answers

Q: Why do economists put so much emphasis on entrepreneurship? How can

Why do economists put so much emphasis on entrepreneurship? How can poor nations encourage it?

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Q: Would you invest in Cambodia or Kenya on the basis of the

Would you invest in Cambodia or Kenya on the basis of the information in Figure 21.5?

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Q: Is a stronger dollar good or bad for the United States?

Is a stronger dollar good or bad for the United States? Explain.

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Q: Whose real wealth (see Table 7.3) declined in

Whose real wealth (see Table 7.3) declined in the 1990s? Who else might have lost real income or wealth? Who gained as a result of inflation? Table 7.3:

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Q: How does international trade restrain the price behavior of domestic firms?

How does international trade restrain the price behavior of domestic firms?

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Q: Should military spending be subject to macroeconomic constraints? What programs should

Should military spending be subject to macroeconomic constraints? What programs should be expanded or contracted to bring about needed changes in the budget? Is this feasible?

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Q: Why did Fed Chairman Bernanke expect there would be no recession in

Why did Fed Chairman Bernanke expect there would be no recession in 2008? Why was he wrong?

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Q: Why were banks reluctant to use their lending capacity in 2008?

Why were banks reluctant to use their lending capacity in 2008? (See News, p. 322.) What did they do with their increased reserves?

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Q: Why might China’s monetary restraint (World View, p. 321

Why might China’s monetary restraint (World View, p. 321) not have worked?

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Q: Why might the Fed want to decrease the money supply?

Why might the Fed want to decrease the money supply?

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