One reason a country might choose a flexible exchange rate
A) to reduce inflation and promote a stable economic environment.
B) to reduce the impact of economic shocks.
C) to rid themselves of the pressure of monetary management.
D) that it is easier for all citizens to understand.
B
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An increase in the minimum wage to $15 per hour would lead to
A) an increase in search activity for many workers. B) a decrease in search activity for many workers. C) a decrease in unemployment. D) no change in unemployment. E) no change in employment.
If the price level rises by 3 percent and workers' money wages increase by 3 percent, then the
A) quantity of labor demand will decrease. B) quantity of labor demand will increase. C) quantity of labor demanded does not change because there is no change in the real wage rate. D) Any of the above could occur depending on the magnitude on the dollar increase in the price level versus the dollar increase in the wage rate.
A tax that is imposed at each stage of production is a
a. sales tax b. excise tax c. high-incidence tax d. value-added tax e. none of the above
Protectionism may reduce imports, and it will also
a. appreciate the dollar, reducing exports. b. appreciate the dollar, increasing exports. c. depreciate the dollar, increasing exports. d. depreciate the dollar, reducing exports.