When the euro appreciated significantly against the U.S. dollar, European policymakers were concerned.To stop the appreciation of the euro, the European Central Bank could have adopted a macroeconomic policy that:
A. reduced the supply of euros but increased the demand.
B. reduced both the supply and demand for euros.
C. increased both the supply and the demand for euros.
D. reduced the demand for euros but increased the supply.
Answer: D
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Which of the following is an example of an implicit cost that a firm might incur?
A) the revenue a firm generates in using its resources B) the rental value of the office space the company owns and uses for itself C) the out-of-pocket expense to hire resources D) taxes owed to the state and Federal governments
Diversification:
A. reduces the likelihood that bad things will happen. B. means you're not likely going to be completely ruined by a single unfortunate event. C. increases the likelihood that bad things will happen. D. None of these statements is true.
When economists describe a production process as capital-intensive, they mean that the
A. Process needs a greater emphasis on labor in order to increase productivity. B. Capital used in the process tends to wear out (depreciate) very rapidly. C. Capital used in the process reflects the most advanced technology. D. Process uses a high ratio of machinery and other capital to labor.
Refer to Figure 10.1. If two lights are installed, the people who were responsible for the light being installed each receive a payoff of
A) 2. B) 4. C) 6. D) 8.