Compared with a system of fixed exchange rates, currency unions are beneficial because they
A. allow every country to have an independent monetary policy.
B. restrict what countries can do with fiscal policy.
C. allow exchange rates to float.
D. eliminate the possibility of speculative attacks.
Answer: D
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Reducing prices below cost in order to eliminate competitors (with the intention of later raising prices to recoup all losses) is
A) an empirical impossibility in a free society. B) called induced competition. C) called predatory price cutting. D) increasingly common in the American economy.
The social cost of a transaction is _____
a. the sum of fixed and variable costs b. the difference between the total cost and opportunity cost c. the sum of private and external costs d. the difference between the private and external costs e. the sum of fixed costs and opportunity costs
Susan operates and owns a small business from home in her own name.? Susan's business is most likely a? _______.
A. partnership B. corporation C. master limited partnership D. sole proprietorship E. limited liability company
When the total quantity of unsold new Tesla Model 3 vehicles increases from 40,000 to 45,000
A. the economy's level of consumption has increased. B. there is a decrease in aggregate output. C. the economy experiences an increase in inventory investment. D. the economy experiences a decrease in investment.