The speculative attack on the British pound in 1967 succeeded because
A) the pound was seriously undervalued relative to the dollar.
B) Britain decided to drop out of the Bretton Woods system.
C) British exports greatly exceeded British imports, causing a large inflow of gold.
D) the Bank of England lacked the international reserves to defend the existing exchange rate indefinitely.
D
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If the government wants to raise tax revenue and shift most of the tax burden to the consumers, it would impose a tax on a good with a:
a. flat (elastic) demand curve and a steep (inelastic) supply curve. b. steep (inelastic) demand curve and a flat (elastic) supply curve. c. steep (inelastic) demand curve and steep (inelastic) demand curve. d. flat (elastic) demand curve and a flat (elastic) supply curve.
GNP and GDP are important economic variables, because of their close association to:
a. Economic well-being and the exchange rate. b. Real interest rates and the nominal exchange rate. c. Nominal and real interest rates. d. Nominal interest rates and real exchange rates. e. Economic well-being and unemployment.
If the public has rational expectations,
A) the only effective policy would be one that is implemented by surprise. B) if the public incorrectly anticipates a given policy, there could be adverse results. C) if policymakers do not do what they say they are going to do, then there could be adverse results. D) a, b, and c E) none of the above
According to the World View article titled "The Way We Give: Philanthropy Can Step In Where Market Forces Don't," in which of the following ways does philanthropy not improve the market outcome?
A. Give awards. B. Require firms to research new and improved health care solutions. C. Draw in experts including universities. D. Make novel arrangements with private companies.