Recall the Application about how the collapse of the housing boom and the worldwide recession of 2007 led to problems for some countries in the Euro-zone to answer the following question(s). When the euro was launched in 1999, the vision of its founders was to use the monetary union to further unify Europe economically and politically. They envisioned a large economic market, comparable to the United States with integrated goods and financial markets. They believed that by moving to a single currency with agreements on a number of fiscal rules that they could achieve economic stability and growth.Recall the Application. The European nations that adopted the euro as a common currency no longer have their own central banks and are therefore no longer able to conduct their own independent:
A. fiscal policy.
B. monetary policy.
C. international investment.
D. trade policy.
Answer: B
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According to the economic way of thinking, alcohol prohibition in the U.S
A) effectively destroyed peoples' incentives to produce and drink liquor. B) abolished the supply and demand process in liquor. C) led to a surge in prices and considerable profit opportunities for people willing to break the law. D) failed to make liquor truly illegal.
Which of the following will not cause a demand curve to shift position?
a. A doubling of the good's price b. A doubling of the price of a closely substitutable good c. A doubling of income d. A shift in preferences
The slope of the aggregate expenditure line is
a. less than zero b. less than 1.0 c. equal to 1.0 d. greater than 1.0 e. the same as the slope of the 45-degree line
The term applied to the Fed's day-to-day technique for controlling the stock of money is
What will be an ideal response?