Explain the credibility theory of the EMS
What will be an ideal response?
In this way, the other EMS countries in effect imported the credibility of the German central bank in fighting inflation, thus discouraging the development of inflationary pressures at home. This is known as the credibility theory of the EMS.
You might also like to view...
The market demand curve for mangos is
A) upward sloping because rich people can afford more mangos than poor people can buy. B) the same as the demand curve of one buyer in a market with many buyers. C) the horizontal sum of the individual demand curves of all the buyers. D) the vertical sum of the individual demand curves of all the buyers. E) the horizontal average of the individual demand curves of all the buyers.
A manager of a small company makes the following statement – "We need to keep hiring additional workers up to the point where the marginal productivity of the last worker we hire is at its maximum
This way we can maximize the total productivity of the firm." Critically evaluate this statement.
If the marginal propensity to consume in a country is 0.6, then a $4,000 decrease in taxes will lead to a _____ in real GDP
a. $4,000 decrease b. $6,000 increase c. $4,000 increase d. $6,000 decrease
The law of demand implies that the demand curve
A. shifts to the left when the price of a good decreases. B. shifts to the right when the price of a good increases. C. has a negative slope. D. has a positive slope.