Explain the three rules that countries must follow to maintain a gold standard
What will be an ideal response?
First, they must fix the value of their currency unit in terms of gold. The second rule of the gold standard is that nations keep the supply of their domestic money fixed in some constant proportion to their supply of gold. The third rule of a gold standard is that nations must stand ready and willing to provide gold in exchange for their home country currency.
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Refer to Table 22-3. Use the table above to calculate the annual growth rate in GDP. Also calculate the total percentage change in the growth from 2013 through 2016
Explain the difference between the average annual growth rate in real per capita GDP from 2013 through 2016 and the total percentage change in growth from 2013 and 2016.
In order to maximize profits, multinationals typically use transfer pricing by showing ________ profits in the high-tax country and by showing ________ profits in the low-tax country
A) high; low B) low; high C) economic; normal D) above-normal; accounting
Compared to a barter economy, an economy that uses money will
A) be greedier. B) be poorer. C) have more corruption. D) have more output.
As the housing bubble began to collapse, the wave of initial foreclosures led to:
A. banks no longer offering refinancing as an option, and home sales slowed. B. more foreclosures due to the herd instinct. C. more household saving in other forms. D. banks flooding the market with homes for sale, further depressing their price.