The speculative attack on the German mark in 1971 resulted in
A) a large increase in the German monetary base.
B) a decline in the value of the mark relative to the dollar.
C) a decision to end the floating of the mark against the dollar.
D) a large decrease in the German monetary base.
A
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Which of the following is the most valid expression of a theory of under consumption as a cause of business cycles?
a. capital goods production encroaches on consumer goods production b. income equals production, but not all income is used for current purchasing power c. people want more goods than the economy is capable of producing; therefore, they must cut their consumption expectations d. the economy provides insufficient purchasing power to buy back the goods it produces
Which of the following is not correct? In a 2006 survey of Ph.D. economists,
a. 47 percent favored eliminating the minimum wage. b. 14 percent would maintain the minimum wage at its current level. c. 38 percent would increase the minimum wage. d. 10 percent would decrease the minimum wage.
Which statement is true?
A. The Fed failed to perform its lender of last resort job after the emergency created by the terrorist attacks on 9/11. B. Thanks to the Check Clearing for the 21st Century Act, the use of checks as a medium of exchange should disappear within a few years. C. The Chinese government and central bank has a significant influence over long-term interest rates in the U.S. D. The Fed changes the federal funds rate in exactly the same manner in which it changes the discount rate.
In order for the compensating differential associated with a risky job to be negative (so that a risky job pays less than a nonrisky job), it must be that
A. most workers prefer the risky job to the safe job when both wages are equal. B. many workers are willing to work the risky job for free. C. the government mandates that the wages in the two sectors be equal. D. there is great demand for labor in both sectors. E. the number of risky jobs is less than the number of workers who prefer the risky job.