Considering its effects through income, the price level, and interest rates only, contractionary fiscal policy causes the value of a country's currency to:
A. move unpredictably.
B. rise.
C. remain unchanged.
D. fall.
Answer: A
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When organizing a collective action, it is generally true that the larger the group the:
A. higher the costs and benefits per person. B. lower the costs and benefits per person. C. higher the costs and lower the benefits per person. D. lower the costs and higher the benefits per person.
Price elasticity of demand
What will be an ideal response?
Higher costs result from a currency union when:
A) nations are economically dissimilar so that demand shocks affect each economy asymmetrically. B) nations are economically similar so that demand shocks affect each economy symmetrically. C) there is intense competition between the economies. D) the currency is pegged to the U.S. dollar.
The result of the Microsoft case was that
A. Microsoft won the case in every court in which it was tried. B. Microsoft was broken up. C. the breakup remedy proposed by the trial judge was overturned on appeal. D. the case was dropped and Microsoft paid no damages to anyone.