In the example of the peg between Britain and Germany, what would have been the case if Britain had adhered to the pegged exchange rate?
A) It would not have had the option of raising its own rate.
B) It would have been able to inflate its currency to keep output stable.
C) It would not have been able to inflate its currency to keep output stable.
D) It would have had to raise taxes and balance its budget.
Ans: C) It would not have been able to inflate its currency to keep output stable.
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An increase in consumer confidence will
A) not change autonomous consumption and rotate the consumption function downward. B) not change autonomous consumption and rotate the consumption function upward. C) increase autonomous consumption and shift the consumption function upward. D) decrease autonomous consumption and shift the consumption function downward.
When a consumer spends all of his or her income and consumes a bundle of goods such that the marginal utility per dollar from all goods is equal, then the
A) consumer's total utility is maximized. B) consumer is in his or her consumption equilibrium. C) marginal utilities for each good are maximized. D) Both answers A and B are correct.
Refer to Table 9-3. Select the statement that accurately interprets the data in the table
A) Tina has a comparative advantage in making candles. B) Bryce has a comparative advantage in making candles and making soap. C) Bryce has a comparative advantage in making candles. D) Bryce has an absolute advantage in making soap.
Intra-industry trade between similar countries produces economic gains because it allows workers and firms to learn and _________ on particular products.
a. innovate b. coordinate c. disseminate d. communicate