Which of the following operate under a fixed-rate unified currency system?
a. the 12 countries of the European Monetary Union
b. the 50 states of the United States
c. Hong Kong, Panama, and the United States
d. all of the above
D
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A change in financial technology that reduces the need to hold cash balances ________ the demand for money and ________ the equilibrium nominal interest rate
A) increases; raises B) decreases; lowers C) increases; lowers D) decreases; raises E) decreases; does not change
Airlines charge a ____________ to business travelers compared to leisure travelers because business travelers have a ____________ demand than leisure travelers
a. Higher; more elastic b. Higher; less elastic c. Lower; more elastic d. Lower; less elastic
Manny's Bar-n-Grill is next door to a franchised fast-food restaurant near a busy freeway exit. Essentially, the menus, food quality, atmosphere, and service are equal at the two restaurants. Nevertheless, the nationally franchised restaurant can attract more customers, even though its prices are higher. This situation
a. indicates that people are irrational because it never makes sense to pay a higher price when a product is cheaper elsewhere. b. is one in which the national franchise provides uninformed consumers with valuable information that reduces their risk of being unsatisfied with the purchase. c. reflects the greater elasticity of supply for food at Manny's Bar-n-Grill relative to the nationally franchised restaurant. d. is inconsistent with the basic postulates that underlie the economic way of thinking.
Throughout the period from 1996 to 2010, U.S. Real GDP growth has been
A. constant. B. declining. C. steadily increasing. D. fluctuating.