Suppose Greece was not part of the Eurozone, and it was facing a possible financial crisis. Which of the following would not have been used to fix the crisis?
A. Allowing its currency to weaken in order to remain competitive
B. Eliminating the fixed exchange rate
C. Using monetary policy to grow the economy
D. Allowing its currency to appreciate in order to remain competitive
Answer: D
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If the economy receives an influx of new workers from immigration,
A) we will move down along the long-run aggregate supply curve. B) we will move up along the long-run aggregate supply curve. C) the long-run aggregate supply curve will shift to the right. D) the long-run aggregate supply curve will shift to the left.
If the economy is growing 5% a year and GDP is $1000 billion, the additional revenues available to meet interest payments on the government deficit would be, ceteris paribus,
A) 50. B) 500. C) It depends upon the amount of new debt issued. D) There would be no additional revenues.
If marginal product is negative, total product must be negative
a. True b. False
Voluntary programs for reducing pollution
a. have been more successful in the United States in encouraging recycling than any other type of program. b. are most appropriate when surveillance and enforcement are impractical. c. work most reliably when voluntary reduction of pollution over a long period is encouraged. d. are enforced by legal authority.