Here are the answers to the questions: 90. Market failure occurs when: Market failure happens when the allocation of goods and services by a free market is not efficient, leading to a net loss of economic value. This often occurs when prices do not accurately reflect the true costs and benefits. C. The price mechanism fails to reflect all costs and benefits 91. What is meant by a floating exchange rate A floating exchange rate is a regime where the currency's value is determined by the forces of supply and demand in the foreign exchange market, without direct intervention from the government or central bank. B. Currency value is determined by supply and demand forces 92. Which factors can cause a country's currency to appreciate Currency appreciation occurs when the value of a currency increases relative to other currencies. Strong economic performance can attract foreign investment, increasing demand for the domestic currency and causing it to appreciate. D. Strong economic performance 93. What happens to money supply when central banks buys government bonds When a central bank buys government bonds, it injects money into the financial system. This increases the reserves of commercial banks, which in turn allows them to lend more, thereby increasing the overall money supply in the economy. A. Money supply increases 94. Government spending affects aggregate demand by: Government spending (G) is a direct component of aggregate demand (AD = C + I + G + NX). An increase in government spending directly increases the total demand for goods and services in the economy, shifting the aggregate demand curve. B. Shifting AD when spending rises 95. New Keynesian argued that: New Keynesian economics emphasizes that market imperfections, such as sticky prices and wages, can prevent markets from clearing efficiently. They argue that government intervention, through fiscal and monetary policies, can help stabilize the economy and mitigate these market failures. C. Government intervention stabilize the economy 96. The unemployment rate is: The unemployment rate is a key economic indicator that measures the percentage of the labor force that is currently unemployed but actively seeking employment. C. The percentage of the labor force that is unemployed That's 2 down. 3 left today — send the next one.