Explain why the decision to join the Euro system presents serious domestic monetary policy issues.
What will be an ideal response?
To join the Euro system requires a country to agree to use a common currency, the euro, and to share a common monetary policy. This means a country surrenders control over its own domestic monetary policy. A country is no longer able to issue its own currency in an attempt to control its domestic interest rate. This places a country in the potentially unenviable position of having to pursue a policy that is beneficial for the Euro system but harmful to its own country.
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East Northland has forgiven the debt it was owed by South Westland. This would be reflected in the ________ account.
A. current B. financial C. reserve D. capital
Assume Ford Motor company purchases a robot that can do the welding work of ten union workers. If the robot is a perfect substitute for labor what can we be sure is true about the annual cost of using and maintaining one robot?
What will be an ideal response?
A current account deficit exists when
(a) Government revenue exceeds spending (b) Government spending exceeds revenue (c) Imports exceed exports (d) Exports exceed imports
The practice of charging customers different prices for the same good is called:
A. price discrimination. B. price marking. C. group discounting. D. customer discrimination.