Economics, 3rd Edition

Questions

1 

If optimism leads to increases in 

average stock prices, does this 

mean that there is also optimism 

that the sovereign debt crisis is 

over the worst? Explain.

2 

What does the movement in the 

yield of Italian five- and ten-year 

debt tell you about the price and 

the view of the markets of Italian 

debt?

3 

Why do you think that the Irish 

Taoiseach placed an emphasis 

on it being ‘… absolutely crit-

ical for governments to be able 

to bring people with them and 

to explain both the nature of the 

problem, the scale of that prob-

lem, the plan and the strategy