In terms of importance, what place does the advent of the euro hold in economic history?
A) It is an important innovation in the evolution of fixed exchange rates.
B) It is an interesting experiment from which we can learn lessons.
C) It is a bold experiment, affecting hundreds of millions of people in one of the most prosperous economic regions.
D) In the grand scheme of things, the euro is less important than the fixed exchange rate scheme devised in Bretton Woods, New Hampshire.
Ans: C) It is a bold experiment, affecting hundreds of millions of people in one of the most prosperous economic regions.
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All else constant, the quantity of labor supplied is inversely related to the amount of training required for a job
a. True b. False
A country running a current account surplus over many years is likely to see its exchange rate:
A. hold steady. B. appreciate. C. the rate can rise, fall, or hold steady; the current account and the exchange rate are not linked. D. depreciate.
Suppose that there are two firms, each generating three tons of SO2. Suppose also that the government has set a target abatement level of two tons. Under a policy of uniform abatement with permits, the firm with the lower marginal abatement cost:
A. will abate exactly the same amount of SO2 as the firm with the higher marginal abatement cost. B. will abate less SO2 than the firm with the higher marginal abatement cost. C. will abate more SO2 than the firm with the higher marginal abatement cost. D. will sell its pollution permit to the firm with the higher marginal abatement cost.
With fixed exchange rates, the adjustment to changes in international monetary conditions comes through
A) exchange rate changes. B) exchange rate changes and international money flows. C) international money flows. D) None of the above.