Shortly after it was established, the Eurozone found that it needed greater power to monitor and enforce discipline upon its members. In particular, which one of the convergence criteria needed closer monitoring?
A) no devaluation of a country's exchange rate
B) an inflation rate no more than 1.5 percentage points higher than that in the three member countries with the lowest rates of inflation
C) a government deficit of no more than 3% of GDP
D) a long-term interest rate no more than 2 percentage points higher than in the three member countries with the lowest rates of inflation
Ans: C) a government deficit of no more than 3% of GDP
You might also like to view...
Diminishing marginal returns implies
A) decreasing average variable costs. B) decreasing marginal costs. C) increasing marginal costs. D) decreasing average fixed costs.
If the reserves in U.S. banks totaled $10,000 and total deposits were $20,000, the banking system's reserve ratio would be:
A. 0.95. B. 0.05. C. 0.20. D. 0.50.
Foreign investment in the United States gives us
A. greater control over our economy. B. less control over our economy. C. neither greater control nor less control over our economy.
In the above figure, if the real interest rate is 8, there is
A) underproduction in this economy. B) a surplus of loanable funds. C) a shortage of loanable funds. D) a shortage in available funds for investment.