Economist Richard Baldwin says the optimism about the Eurozone may be unjustified. His research suggests trade increases in the Eurozone as a result of the currency union:
A) are much larger than previous estimates or forecasts and likely to show future gains.
B) are much smaller than previous estimates or forecasts and unlikely to show future gains.
C) are less stable and subject to wide variations.
D) could be much larger if poor and unstable economies were not in the Eurozone.
Ans: B) are much smaller than previous estimates or forecasts and unlikely to show future gains.
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Your boss asked you to research the purchasing habits of consumers near an underperforming store. You use your favorite search engine to look for information; however, you find nothing useful. All of these are possible reasons for this except _______________.
Fill in the blank(s) with the appropriate word(s).
Will consumption taxes lead to more savings? Why or why not?
What will be an ideal response?
Let us suppose that you apply for a loan with a bank. You tell the bank that you are going to remodel your kitchen, but after you get the loan you go to Las Vegas to gamble with the money. Your behavior is an example of
A) adverse selection. B) direct credit allocation. C) moral hazard. D) indirect credit allocation.
Refer to the graph below, which shows an aggregate demand curve. If the price level decreases from 200 to 100, the real output demanded will:
A. Increase by $800 billion
B. Increase by $200 billion
C. Decrease by $600 billion
D. Decrease by $200 billion