The creation of the European Monetary Union in 1999 lowered nominal interest rates in countries like Italy, because:
a. Nations in the European Monetary Union were required to reduce the maturity of their debt issues.
b. Each nation now had a solid currency, and the markets knew that the central banks of these nations could create as much money as necessary to repay government debts.
c. Markets had more confidence in the European Central Bank than they did in the Bank of Italy.
d. All of the above.
e. None of the above.
.C
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Structural unemployment is likely to be affected by
A) the reservation wage curves of people. B) minimum wage laws and other "rigidities" in the economy. C) recessions and expansions. D) the amount of the money supply.
When people make decisions about the quantity of education to undertake, they balance the marginal social benefit against the marginal private cost
Indicate whether the statement is true or false
Suppose you put $350 into a bank account today. Interest is paid annually and the annual interest rate is 6 percent. The future value of the $350 after 4 years is
a. $414.09. b. $434.00. c. $441.87. d. $481.24.
The recession of 2008-2009 was preceded by
a. a sharp decline in housing prices. b. large losses among financial institutions that owned mortgage-backed securities. c. rises in mortgage defaults and home foreclosures. d. all of the above