One drawback to a single currency is that
A) the exchange rate is more volatile.
B) bond markets are larger and therefore harder to control.
C) exporters and importers have fewer choices about how they will receive and make payments.
D) individual nations cannot use monetary policy to stabilize the economy.
D
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In the above figure, when the interest rate is 8 percent and household income is $40,000, household consumption is
A) $0. B) $20,000. C) $35.000. D) $60,000.
Compared with a system of fixed exchange rates, currency unions are beneficial because they
A) restrict what countries can do with fiscal policy. B) allow exchange rates to float. C) allow every country to have an independent monetary policy. D) eliminate the possibility of speculative attacks.
Competition in markets results in:
A.) Economic losses in the long run. B.) Guaranteed economic profit. C.) The optimal mix of goods and services being produced. D.) An undesirable allocation of resources.
Explain the relationship between elasticity of supply and time
What will be an ideal response?