Suppose that the United Kingdom pegs the pound to the euro. If all other things remain unchanged, what would you expect to happen to European interest rates if all countries who use the euro decided to adopt expansionary fiscal policies?
A) They would rise.
B) They would fall.
C) They would not change.
D) That cannot be determined using the information provided.
Answer: A) They would rise.
Economics
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The overall volume of daily currency trade was __ in 2007.
a. $3.2 billion b. $32 billion c. $320 trillion d. $320 billion
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When the output per hour of workers is high, the real wages of the workers will also be high.
A. True B. False
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When quantity demanded is greater than quantity supplied, there is a _____________.
Fill in the blank(s) with the appropriate word(s).
Economics
Since 1970, the U.S. federal government had a budget surplus
A) in almost every year. B) in a few years in the 1990s. C) only once, in 2008. D) The U.S. federal government has not had a budget surplus since 1970.
Economics