Capital Inflow Restrictions

question 86

Multiple Choice

Capital inflow restrictions

• A)receive less support from economists than full capital controls.
• B)may lessen domestic lending booms and risk-taking by domestic banks.
• C)were imposed in the United States during the late 1990s.
• D)were imposed in Europe in May 2000.

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Definitions:

Externalities

Financial consequences for unrelated third parties, which can manifest as either positive or negative effects.

Perfectly Competitive

Describes a market structure where many firms sell identical products, there are no barriers to entry, and no single buyer or seller can influence the market price.

Allocate Resources

The process of distributing available resources, such as labor, capital, and land, among various uses to fulfill societal needs and wants.

Consumer Surplus

The deviation between the monetary amount consumers are willing to pay for a good or service and the monetary amount they actually pay.