Adopting a common currency implies all of the following, EXCEPT that:
A) each region will lose its monetary autonomy.
B) a common interest rate will be set.
C) each region will retain its monetary authority.
D) a common monetary policy will be set by the central bank.
Ans: C) each region will retain its monetary authority.
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A public debt which is owed to foreigners can be burdensome because:
A. Foreign interest rates are persistently higher than domestic interest rates B. The payment of interest reduces the volume of goods and services available for domestic uses C. The payment of interest will conflict with a nation's foreign aid programs D. The payment of interest will necessarily have a deflationary effect on prices in the paying nation
In Figure 16-1 above, the increase in gross investment lags actual sales because
A) replacement investment is not determined by actual sales. B) expected sales lag actual sales and net investment is determined by expected sales. C) actual sales lag expected sales and net investment is determined by expected sales. D) expected sales lead actual sales and net investment is determined by expected sales.
For most commonly used social welfare functions, an efficient allocation is
A) always preferred over any inefficient allocation. B) not possible. C) usually preferred. D) never preferred.
If the marginal cost of hiring another worker to produce sandwiches is $4 per sandwich, and sandwiches sell for $5 each, then:
A. another worker should be hired. B. two more workers should be hired. C. another worker should not be hired. D. Cannot answer this without more information.