A currency union is:
A) a trade agreement between countries.
B) a customs union between countries.
C) when countries abandon their domestic currency and adopt a common currency.
D) a free trade area.
Ans: C) when countries abandon their domestic currency and adopt a common currency.
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A country's balance of payments summarizes all economic transactions during a given period between residents of that country and residents of other countries
a. True b. False
The accounting identity for the economy's factor payments can be written as ____
a. GDP = wages + interest + rents + profits b. GDP = consumption + investment + government + intermediate goods + net exports c. GDP = wages + interest + rents + net exports d. GDP = wages + interest + rents + saving + investment
The problem arises with principals and agents when the goals of the agent are incompatible with those of the principal and when the agent cannot pursue hidden actions
Indicate whether the statement is true or false
As the Consumer Price Index increases, the value of money
a. falls, so people hold more money to buy the goods and services they want. b. falls, so people hold less money to buy the goods and services they want. c. rises, so people hold more money to buy the goods and services they want. d. rises, so people hold less money to buy the goods and services they want.