Explain how the German Bundesbank gained its low-inflation reputation
What will be an ideal response?
Mainly, Germany's experience with hyperinflation on the 1920s and again after World War II left the German electorate with a deeply rooted fear of inflation. The law establishing the Bundesbank singled out the defense of the DM's real value as the primary goal of the German central bank.
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What most accurately describes imperialism between 1870 and 1917?
a. The US was the leading imperialist nation in the late 19th century. b. The US was primarily concerned about expanding freedom in relatively poor nations in Africa. c. The "Roosevelt Corollary" and the Monroe Doctrine were the primary documents that outline the US foreign policy. d. European nations like England and France oriented their annexation efforts toward Latin America.
If exchange rates are determined in a floating rate system, what determines the value of a U.S. dollar in terms of euros?
a. government exchange rate policies b. IMF rules and policies c. demand and supply d. central bank interventions
How many workers would the firm hire if the wage rate were $200?
Businesses have two types of cost: fixed and variable.
Answer the following statement true (T) or false (F)