If a currency rapidly depreciates, what are the possible negative results to the economy of using contractionary monetary policy to address the depreciation?
What will be an ideal response?
National income falls and perhaps the economy goes into a recession.
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In the United States, a reason for the increase of the labor force participation rate for women is that
A) an increase in wealth allowed men to retire early. B) more women pursued a college education and received higher wages upon graduation. C) fewer women married. D) there has been a decrease in jobs with flexible hours. E) improved Social Security benefits are available for women if they work.
If city officials expect that an increase in bus fares will raise mass transit revenues, they must think that the demand for bus travel is
a. elastic b. unit elastic c. inelastic d. perfectly inelastic e. -10
“Peak pricing” can only work effectively if prices remain relatively low for scarce resources.
Answer the following statement true (T) or false (F)
The Social Security Trust Fund
A. is insolvent relying on payments from the general fund. B. is in surplus but the surplus is falling. C. generates dividends and investment income to fund Social Security payments. D. is managed by the Federal Reserve.