Other things equal, a broad shift to expecting depreciation of the euro will lead to
A. an increase in official exchange market intervention by the euro area monetary authorities.
B. an inflow of capital to Europe.
C. a lowering of exports of European goods and services.
D. a decrease in the demand for euro-denominated financial assets.
Answer: D
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Consider a good whose consumption takes place publicly. Your decision to buy that good depends
A) both on the characteristics of the product and on how many other people are buying the good. B) only on the price of the good. C) only on how many other people buy the good. D) only on the characteristics of the good.
In a simple Keynesian model, an increase in income leads to an increase in
A) savings. B) investment. C) the price level. D) the money supply.
Which statement is false?
A. The unemployment rate for blacks has consistently been double that of whites. B. The largest source of income is property income. C. Women have traditionally earned 60% of what men have earned. D. None of these statements are false.
Which of the following results from a change in the business cycle, ceteris paribus?
A. Structural unemployment. B. Cyclical unemployment. C. Structural deficit. D. Frictional unemployment.