Symmetric shocks pose fewer problems for nations linked by fixed exchange rates to a base currency. In general:
A) because there are common problems, the economic policy taken by the base currency nation is beneficial for both nations.
B) it gives the nation maintaining the peg more autonomy to deal with financial crises.
C) the base currency nation can just do nothing, and the issue will resolve itself.
D) when there are symmetric shocks, the home nation unlinks its exchange rate from the base currency nation.
Answer: A) because there are common problems, the economic policy taken by the base currency nation is beneficial for both nations.
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Assume that your nominal wage was fixed at $25 an hour, and the price of gasoline fell from $4.00 to $1.50. In this case, your real wage (in terms of gasoline) has
A. decreased to $6.25. B. increased to $10. C. decreased to $16.66. D. increased to $16.66.
Which of the following expenditures would be counted as consumption in GDP accounts? a. Mary buys a new home computer to check her e-mail and play computer games. b. Mark buys a new computer for his medical economic consulting business
c. Leslie, an EPA scientist, buys a new computer for her lab at work. d. Juan leases a new computer for his graphic design company.
When aggregate expenditures fall below the full-employment level of output, which of the following types of unemployment is most likely to increase?
A. Seasonal. B. Structural. C. Cyclical. D. Frictional.
The Sherman Act outlawed practices that result in the restraint of trade.
Answer the following statement true (T) or false (F)