The economic costs of forming a currency union will be lower whenever:
A) labor market integration is lower.
B) labor market integration is higher.
C) labor markets are not integrated.
D) wage rigidities are present.
Ans: B) labor market integration is higher.
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Worker discrimination occurs when
A) workers refuse to perform risky tasks. B) employers pay different employees different wages based on race. C) workers refuse to work with persons of a different race. D) customers refuse to buy products produced by a racially diverse workforce.
The trend in current tariff laws is to
A) raise tariffs on foreign goods. B) keep tariffs the same. C) lower tariffs on foreign goods. D) abolish tariffs all together.
Derivatives
A. can be used to reduce risk. B. can be a source of risk. C. made the financial crisis of 2007–2009 worse than it otherwise would have been. D. All of these responses are correct.