An optimum currency area is a geographic region
A) with inflation near zero.
B) that allows exchange rates to float.
C) that has fixed exchange rates.
D) for which the benefits of having a common currency exceed the costs.
D
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The marginal utility of a third skirt is
A) three times the average utility of the three skirts. B) three skirts times the price of a skirt. C) the total utility of three skirts divided by three. D) the change in total utility from the third skirt.
The most distinguishing economic feature of money is its
A) medium of exchange role. B) store of value role. C) unit of account role. D) standard of deferred payment role.
If GDP increases in the model of public goods
A) people are richer, so they need less public goods. B) there is substitution from private goods to public goods. C) if the government provides public goods optimally, public and private goods production both increase. D) all of the increase in GDP goes into public goods.
Corporate income taxes
a. make recessions and inflationary episodes more severe b. make recessions and inflationary episodes less severe c. make recessions more severe and inflationary episodes less severe d. make recessions less severe and inflationary episodes more severe e. have no effect on the severity of recessions and inflationary episodes