Other things equal, if the central bank raises the target inflation rate, this would result in the
A) AD curve shifting temporarily to the right.
B) AD curve shifting permanently to the right.
C) AS curve shifting temporarily to the left.
D) AS curve shifting permanently to the left.
B
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The Law of Diminishing Marginal Benefit states that:
A) the demand for a commodity declines as its price increases. B) the demand for a commodity is more dependent on income than on price. C) the willingness to pay for an additional unit declines as more of a good is consumed. D) lower levels of consumption give lower level of utility.
If the price of apples falls and apples and oranges are substitutes, we would expect:
a. The quantity of apples demanded to increase and the demand for oranges to increase.
b. The quantity of oranges demanded to decrease and the demand for apples to increase.
c. The quantity of apples demanded to increase and the demand for oranges to decrease.
d. The quantity of oranges demanded to decrease and the demand for apples to decrease.
During the EMS crisis in 1992,
A) all the EMS countries abandoned the system. B) Germany abandoned the system. C) England and Italy abandoned the system. D) France was put in charge of the system. E) all the EMS countries stood firm, and refused to change central parities.
Describe the history and consequent deepening as the European Union developed. Which treaties created which level of economic integration? Do countries have the ability to participate in some levels of integration and not others? Give specific examples
What will be an ideal response?