When Germany increased fiscal spending and raised interest rates in the early 1990s,
A) economic growth increased throughout Europe.
B) other countries were forced to raise interest rates to stay in the ERM.
C) it was unsuccessful in supporting East Germany.
D) it forced other countries to devalue their currencies.
B
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The iconic American drink-maker, Coca-Cola, announced plans in 2008 to buy the dominant Chinese fruit juice company for $2.5 billion. But China just rolled out a new law to guard against business monopolies
How would this rent-seeking behavior by Coca-Cola most likely affect efficiency in the drink market? A) Profit would increase. B) Producer surplus would increase. C) Consumer surplus would decrease. D) Deadweight loss would increase.
Since the early 1980s, the real exchange rate between U.S. goods and Japanese goods has climbed, relative to the nominal exchange rate (yen/U.S. dollar). What does this imply about economic conditions in the two countries?
What will be an ideal response?
Most income transfer programs in the United States
a. are means-tested programs that transfer income to the poor. b. allocate income to small businesses and small farmers. c. are designed to help those with very little economic and political power. d. allocate income to concentrated interest groups, such as the elderly, large farmers, and business interests.
It is only among the least skilled and least experienced members of the labor force that minimum-wage laws cause unemployment
a. True b. False Indicate whether the statement is true or false