Austerity measures are designed to:
A. reduce the government budget deficit.
B. prevent the collapse of large financial institutions.
C. increase consumer spending.
D. increase government spending.
Answer: A
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Based on this figure, if the krone exchange rate is fixed at $0.15 dollars per krone, then the krone is: 
A. overvalued B. undervalued C. devalued D. revalued
The long-run neutrality of money refers to the fact that in the long run, monetary policy
A) changes only real output. B) changes only the real interest rate. C) changes both real output and the real interest rate. D) has no effect on either real output or the real interest rate.
If the private-sector wage of biologists was significantly greater than that of music professors, what might happen if a university tried to pay its entire faculty the same salary?
During the Great Recession of 2007-2009, the U.S. ________
A) experienced unprecedented declines in household wealth
B) the unemployment rate more than doubled
C) experienced the most severe economic downturn since the Great Depression
D) all of the above
E) none of the above