A major problem with countries setting fixed exchange rates for their currencies is
A. The foreign exchange reserves of participating countries will always be depleted.
B. Some participating countries are likely to experience continuing balance-of-payments deficits.
C. The fixed rate will have to be maintained by currency market intervention.
D. Import and export prices will probably become more unstable.
Answer: C
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If the nominal interest rate in an economy is 8% and the real interest rate is 4%, the inflation in the economy is:
A) 4%. B) 32%. C) 12%. D) 8%.
Discuss how economists measure the following: (i) aggregate expenditure, (ii) aggregate income, and (iii) aggregate output
What will be an ideal response?
Between the 1880s and 1920, women composed roughly ____ of the workforce
a. 1–2% b. 5–10% c. 15–20% d. 30–40%
A decrease in a person's real wage necessarily means: a. lower purchasing power
b. a lower nominal wage. c. a lower personal disposable income. d. a higher nominal wage. e. a higher personal disposable income.