As economic similarity rises, the stability costs of a common currency decrease because there are:
A) more asymmetric shocks.
B) fewer asymmetric shocks.
C) no asymmetric shocks.
D) no symmetric shocks.
Ans: B) fewer asymmetric shocks.
You might also like to view...
If an indifference curve intersects the budget constraint at two points, then ________
A) the consumer would be equally happy at either of those two points B) optimal consumption is found by moving to a lower indifference curve C) optimal consumption is found by moving to a lower budget constraint D) the consumer will choose the point that minimizes consumption expenditure
Which of the following will reduce the risk accompanying equity (stock) investments?
a. the purchase of shares of a mutual fund that holds the stocks of many diverse corporations b. the purchasing and holding of equities over a lengthy period of time c. the purchase of shares in firms doing business in a wider variety of industries and markets d. all of the above
The modern synthesis view of fiscal policy stresses
a. how easy it is to time fiscal policy changes so they exert a stabilizing influence on the economy. b. the ineffectiveness of fiscal policy, even during periods of widespread unemployment. c. the difficulties involved in timing fiscal policy changes so they will exert a stabilizing impact on the economy. d. that automatic stabilizers do not help smooth fluctuations in the economy.
Which of the following summarizes the transactions involving the international exchange of goods and services, transfers, military transactions, and other miscellaneous transactions?
A. Capital account B. Balance of trade C. Statistical discrepancy D. Current account