The Maastricht rules specified budgetary rules such as meeting deficit and debt targets because:
A) nations that are able to keep spending down will probably have more money left over to pay their Eurozone dues.
B) nations that are fiscally sound will not be tempted to inflate their currency to reduce the real burden of their debt.
C) if one nation spends more and taxes less, population will tend to emigrate to that nation.
D) the ECB is prohibited from lending to nations, that nation may run out of available credit.
Ans: B) nations that are fiscally sound will not be tempted to inflate their currency to reduce the real burden of their debt.
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In the figure above, an increase in the U.S. interest rate relative to that in Canada shifts the demand curve for U.S. dollars ________ and shifts the supply curve of U.S. dollars ________
A) leftward; leftward B) leftward; rightward C) rightward; leftward D) rightward; rightward
During 2009-2010, the federal budget
A) ran a surplus of approximately 2 percent of GDP. B) ran a deficit of approximately 2 percent of GDP. C) ran a deficit of approximately 10 percent of GDP. D) was balanced during both years.
Evidence suggests that income inequality in India is
A. increasing relatively rapidly. B. increasing relatively slowly. C. decreasing relatively slowly. D. decreasing relatively rapidly.
If the income effect is ________ the substitution effect, the labor supply curve has a positive slope.
A. smaller than B. equal to C. unrelated to D. greater than