An advantage to a developing nation of fixed exchange rates is that it's:
A) easier for the central bank to print money to finance its deficit.
B) harder for the central bank to print money to finance its deficit.
C) easier to conduct fiscal policy.
D) harder for the government to raise taxes.
Answer: B) harder for the central bank to print money to finance its deficit.
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Structural unemployment includes people who become unemployed from
A) changes in the business cycle. B) technological changes. C) going back to school. D) changes in the seasons. E) normal changes in the labor force.
After firm A producing one good acquired another firm B producing another good, it raised the prices for the bundle of goods. One can conclude that the goods were
a. substitutes b. complements c. not related d. None of the above
Incentives for borrowers and savers in the loanable funds market are determined by the nominal interest rate as opposed to the real interest rate
a. True b. False Indicate whether the statement is true or false
The open access equilibrium is usually
a. Economically efficient but ecologically unsustainable Incorrect b. Economically efficient and ecologically sustainable c. Economically inefficient but ecologically sustainable d. Neither economically efficient nor ecologically sustainable e. Highly profitable for resource users