Which of the following is an immediate effect of an increase in money supply by the European Central Bank of 10 percent?
A. There will be an inflow of foreign capital in the countries belonging to the European Union.
B. The product prices in the EU countries will decline drastically.
C. The expected future exchange-rate value of the foreign currencies vis-à-vis the Euro will increase.
D. The interest rate in the EU countries will increase.
Answer: C
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A. lower B. higher C. similar D. exactly equivalent
What are the two conflicting incentives that politicians must deal with? What is the result of this conflict?
Please provide the best answer for the statement.
According to comparative advantage, trade between two countries
A. guarantees that consumption levels will be equal in the two countries. B. allows each of the trading countries to allocate its resources most efficiently. C. maximizes the amount of inputs that are used in the production of all products. D. will benefit all the industries in each of the countries.
Which of the following explains why private employees (more frequently than public employees) tend be in defined contribution programs?
A. They have well-funded private savings plans. B. They tend to move from employer to employer. C. They tend to fall for Ponzi schemes. D. They tend to begin and end their career with the same employer.