VII. Central Banks and Economic Stability

1. bankers, politicians 6. hyper-inflation

2. inflation 7. the International Monetary Fund

3. monetary policy, exchange rates 8. disinvestments, investment fund holders

4. high interest rates, inflation

5. small banks

KEYS

REVISION II. The Fundamental Problems of Economics. 1 - needs; 2 - resources; 3 - scarcity;

EXERCISES 4 - consumers; 5 - services; 6 - demand; 7 - producers; 8 - tools; 9 - unlimited;

10 - satisfy; 11 - produce; 12 - fundamental.

III. Classical Economic Theory. 1 - equilibrium; 2 - resources; 3 - assumptions;

4 - perfect competition; 5 - exogenous; 6 - exchange; 7 - commodity; 8 - information;

9 - industrialists.

IV Friedman is not Dead and Keynes Lives. 1 - monopoly; 2 - competitor; 3 - competition;

4 - free trade; 5 - export subsidies; 6 - economies; 7 - scale; 8 - suppliers; 9 - consortium;

10 - market share; 11 - subsidy; 12 - resources.

V Traditional Economy. 1 - economic; 2 - behaviour, 3 - decisions; 4 - goods and
services; 5 - distributed; 6 - skills; 7 - advantage; 8 - stable; 9 - disadvantage;

10 - stagnant.

VI.. The Market System. 1 - interaction; 2 - wants; 3 - resources; 4 - represent;

5 - factors; 6 - classified; 7 - profit; 8 - hand; 9 - agents; 10 - purchased; 11 - scarcity;
12 - efficient; 13 - utilization; 14 - interests;15 - compromises; 16 - rational; 17 - profit;
18 - minimum.