Currency unions are rare because
A. speculative attacks are likely to occur.
B. they're to no one's advantage.
C. countries are reluctant to give up having their own currencies.
D. having flexible exchange rates has the same benefits and none of the costs.
Answer: C
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Microeconomics is defined as that part of economic analysis that
A) studies the behavior of the economy as a whole. B) includes the problems of inflation and unemployment. C) studies individual decision making by households and firms. D) concerns aggregate production and consumption.
If the Fed buys more bonds from the public, and increases the price it is willing to pay for the bonds, what will happen to interest rates?
a. They will rise. b. They will fall. c. They will remain unchanged. d. The relationship between bond prices and interest rates is unclear.
Which statement is an example of complementary goods affecting demand?
a. When diets that limited bread became popular, sales of jelly dropped. b. When studies showed that fish contained toxins, sales of chicken rose. c. As the U.S. Hispanic population grew, sales of salsa increased. d. After a fashion model shared her diet secrets, yogurt sales went up.
The price of imported oil decreased in 2001. How did this affect the aggregate supply curve?
A. The aggregate supply curve became steeper. B. The aggregate supply curve became flatter. C. The aggregate supply curve shifted inward. D. The aggregate supply curve shifted outward.