Following the 2007-2009 financial crisis, many people feared that Greece might leave the euro and resume using the drachma. If that happened, the drachma might be worth less than the euro
When using fiat money like the drachma, the key to acceptance is that households and firms have confidence that if they accept drachma in exchange for goods and services, the drachma will not lose much value during the time they hold them. If sellers were not willing to accept the drachma in exchange for goods and services, the drachma would not serve as
A) a medium of exchange. B) fiat money.
C) legal tender. D) a unit of account.
A
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The relationship between annual real per-capita GDP and corruption across countries has been found to be
A) negative. B) positive. C) The relationship was negative in the late 1960s but is now positive. D) The relationship was in the late 1960s but is now negative. E) There is no relationship between these two variables.
The term natural rate of unemployment refers to the minimum level of unemployment that occurs even when the economy is healthy
a. True b. False Indicate whether the statement is true or false
Which of the following policies would not improve the terms of trade from the point of view of import-competing industries in the United States?
A. Placing tariffs on imports of foreign goods. B. Restricting imports of foreign goods. C. Increasing the degree of free trade. D. "Buy American" campaigns.
Because you can get more of one good only by giving up some of another good, the shape of a production possibility curve is:
A. perfectly vertical. B. perfectly horizontal. C. upward-sloping. D. downward-sloping.