The expectation of future revaluation causes a balance of payments crisis marked by
A) a sharp rise in reserves and a fall in the home interest rate below the world interest rate.
B) a sharp fall in reserves and an even bigger fall in the home interest rate below the world interest rate.
C) a sharp fall in reserves and a rise in the home interest rate above the world interest rate.
D) a sharp rise in reserves and an even greater rise in the home interest rate above the world interest.
E) a sharp fall in reserves and an unchanged home interest rate.
A
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Cyclical unemployment arises when
A) unskilled or low-skilled workers find it difficult to obtain desirable, long-term jobs. B) labor must be reallocated from industries that are shrinking to areas that are growing. C) workers must search for suitable jobs and firms must search for suitable workers. D) output and employment are below full-employment levels.
One desirable aspect of having multiple levels of government is that numerous small governments _____
a. leads to a prisoners' dilemma b. allows for the possibility of intergovernmental competition c. affect the optimal size of the sharing group d. demonstrate how effective the federal government is at what it does
In general, an externality is created when
A) people are affected (other than by price) by a transaction which they were not part of. B) firms produce a product of low quality and consumers don't like it. C) firms have to pay for pollution the environment. D) the government subsidizes education.
The first money issued by a United States' governmental authority were
a. bank notes issued by the United States Treasury 1766, 10 years before the founding of the Republic b. silver certificates issued by the Federal Reserve on the eve of the American revolution c. Continental Notes issued by the Continental Congress to finance the Revolutionary War d. greenbacks issued by the Treasury to finance the War of 1812 e. gold certificates issued by the Federal Reserve during American revolution