Those who advocate a return to a real gold standard believe that doing so would
A. force countries to pursue sustainable fiscal policies.
B. allow countries to earn a higher rate of interest on their holdings of international reserve assets.
C. reduce inflation rates by imposing strong discipline on national monetary authorities.
D. reduce unemployment rates by allowing countries to have independent monetary policies.
Answer: C
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You are sick and tired of your old wardrobe. You decide to donate it to a charity of your choice. Your action
a. Creates wealth by moving the clothes from lower value use to higher value use b. Destroys wealth since you lose your clothes c. Creates wealth by making you feel richer d. All of the above
Bank runs ____ bank reserves and ____ the money supply
a. decrease; decrease b. decrease; increase c. increase; increase d. increase; decrease
A worker who loses a job at a call center because the company moved the call center operations to another country is an example of
A. cyclical unemployment. B. disguised unemployment. C. structural unemployment. D. frictional unemployment.
Table 16.1Both firms depicted in Table 16.1 can benefit if Firm A sells its pollution permit allowing it to generate 1,000 gallons of wastewater to Firm B for:
A. a price between $12 and $15. B. a price between $0 and $6. C. a price greater than $20. D. It is not possible for firms to benefit if Firm A sells a permit to Firm B.