Capital inflows occur if foreign interest rates are greater than domestic interest rates
Indicate whether the statement is true or false
FALSE
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Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time college students. This would cause
A) the unemployment rate to decrease. B) the number of discouraged workers to increase. C) no change in the unemployment rate. D) the labor force participation rate to decrease.
If money wages increase, the most likely result is a(n)
a. increase in aggregate supply. b. decrease in aggregate supply. c. steeper aggregate supply curve. d. flatter aggregate supply curve.
Most economists agree that the self-correcting mechanism works
a. very slowly. b. very rapidly. c. rapidly in the short run and slowly in the long run. d. slowly in the short run and rapidly in the long run.
Suppose Greece was not part of the Eurozone, and it was facing a possible financial crisis. Which of the following would not have been used to fix the crisis?
A. Allowing its currency to weaken in order to remain competitive B. Eliminating the fixed exchange rate C. Using monetary policy to grow the economy D. Allowing its currency to appreciate in order to remain competitive