Britain's decision to exit the ERM in September 1992 had what effect?
A) Lower interest rates and a depreciated exchange rate caused the British economy to expand.
B) It subjected Britain to a ruling by the European Courts of Justice.
C) It caused the system to collapse.
D) It had no effect on Britain's economy.
Ans: A) Lower interest rates and a depreciated exchange rate caused the British economy to expand.
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A. greater than $25. B. equal to $25. C. less than $25. D. equal to marginal cost.
Inflation is defined as a sustained increase in an economy's price level
a. True b. False Indicate whether the statement is true or false
If Bank A borrows from Bank B, reserves in the banking system __________. If Bank A borrows from the Fed, reserves in the banking system __________
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Suppose that the demand curveis D. To increase the equilibrium quantity by 1, the demand needs to increase by
a. 3 b. 1 c. 2 d. 1/2