The fiscal shock in Germany due to reunification caused the Bundesbank to pursue a monetary policy that:
A) was appropriate for Britain, since it had experienced a similar shock.
B) was appropriate for all the other ERM nations but not Britain.
C) was appropriate only for Germany, since neither Britain nor other ERM nations experienced a similar shock.
D) had poor timing, since the monetary action should have come before the reunification.
Answer: C) was appropriate only for Germany, since neither Britain nor other ERM nations experienced a similar shock.
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A) fixed investment plus actual inventory investment. B) fixed investment plus unplanned inventory investment. C) fixed investment. D) fixed investment plus planned inventory investment.
Commodity products are
a. rare and expensive b. patented and licensed c. highly differentiated d. uniform or standardized e. ones without impurities
Under socialism, factories, farms, mines, and natural resources are owned by:
a. laborers. b. government. c. private stockholders. d. no one.
A contractionary monetary policy helps close an inflationary gap in an economy but leads to lower levels of output and employment
a. True b. False Indicate whether the statement is true or false