Explain an additional disadvantage for a country undergoing dollarization compared to a currency board or other exchange-rate targeting regimes
What will be an ideal response?
The additional disadvantage to dollarization is that the government loses seignorage. Seignorage is the income that a government earns by issuing its own currency.
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Susan thinks the only fair outcome is one in which she has three slices of pizza a week. Susan is using a(n) ________ concept of fairness
A) "it's not fair if the result isn't fair" B) "it's not fair if the rules aren't fair" C) "big tradeoff" D) "Novak principle"
Refer to Table 2.3. Nominal GDP in 2013 is
A) $568.00. B) $794.00. C) $812.00. D) $961.00.
Firms with internal labor markets have more flexibility in deciding the level and time profile of wages because
A. individuals tend to base their employment decisions on their entire career earnings. B. compensating wage differentials do not have to be paid in internal job markets. C. they have to pay the wage rate that equals the marginal revenue product of labor. D. firm-specific human capital is less costly than general human capital.
The aggregate demand curve is downward sloping because:
A. an increase in the price level will cause an increase in spending. B. at lower price levels, real wealth decreases, causing a decrease in the quantities of goods and services demanded. C. at lower price levels, interest rates decrease, causing a decrease in the quantities of goods and services demanded. D. at lower price levels, exports increase, causing an increase in real GDP.