Both France and the United Kingdom successfully used exchange-rate targeting to lower inflation in the late 1980s and early 1990s by tying the value of their currencies to the
A) U.S. dollar.
B) German mark.
C) Swiss franc.
D) Euro.
B
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What are the implications for economic growth for countries specializing in consumer goods rather than capital goods? Assume that they cannot trade what they produce
What will be an ideal response?
On Thanksgiving, Jake's mother gives him a huge platter of food. If Jake were to keep eating just to please his mother (even when he really wanted to stop), his marginal utility would be:
a. the same as his total utility. b. large. c. minus one. d. positive. e. negative.
Behavioral economics
a. helps explain why economic decision makers maximize either utility or profit b. assumes that people behave "as if" they are maximizing something. c. is a subfield of economics, but one that is rejected by most economists d. explains why irrational behavior is better than typically "rational" behavior. e. points out that some human behavior is not consistent with any type of maximization
What to do about inflationary and employment problems in the economy? Conservative economists advocate
a. strong fiscal policy, particularly taxing luxuries b. strong monetary policy, particularly taxing luxuries c. no interference in the private sector d. that to pursue aggressive and consistent policy, the Federal Reserve System should become a department with the executive branch of government e. relying on trends in real business cycles to implement expansionary fiscal policy