What are the likely effects of a sovereign debt crisis in terms of the government's ability to finance its debt?
What will be an ideal response?
If the government defaults, it may not be able to issue bonds for a period of time. If it does not default, it will probably have to pay higher rates of interest for a period of time.
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Describe how the euro was created. What are the benefits of the monetary union? What are the costs?
What will be an ideal response?
The attribute that distinguishes money from other assets is that only money
A) retains its value during times of inflation. B) is counted in determining the size of an individual's wealth. C) serves as a medium of exchange. D) may be used as collateral for a bank loan.
As the baby boom ended, fewer families had young children and, as a consequence, the
a. demand curve for preschool services shifted outward b. demand curve for preschool services shifted inward c. supply curve for preschool services shifted outward d. supply curve for preschool services shifted inward e. supply and demand curves for preschool services remained constant
An increase in the money supply is more likely to be inflationary when
a. the economy is at less than full employment. b. the economy is at full employment. c. a surplus government budget exists. d. velocity is decreasing.