Over a period of years, exchange rates tend to move in the general direction of the PPP exchange rate
a. True
b. False
Indicate whether the statement is true or false
True
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What is the relationship between the marginal benefit, value, and demand?
What will be an ideal response?
Dove policies advocate
a. less stability in output if greater price stability can be achieved. b. more stability in output if greater price stability can be achieved. c. more stability in output even at the cost of more price instability. d. stable prices at any cost. e. more stability in tax revenues even at the cost of more unemployment.
The inflation tax is an:
A. implicit tax on the holders of cash and the holders of assets specified in nominal terms. B. implicit tax on the holders of cash and the holders of assets specified in real terms. C. explicit tax on firms that raise their prices. D. explicit tax on wealth.
What was the most important advantage to the EU countries that adopted the EURO as their official currency?
A. Introduction of the euro increased exports to outside countries. B. Introduction of the euro has eased trade and commerce among the nations that adopted the euro. C. Introduction of the euro increased the disposal income of member countries population. D. The euro immediately replaced the dollar in international trade.