Which of the following points would not be used as an argument in support of the current international monetary system?
A) It allows nations to pursue independent monetary policies.
B) It results in stable exchange rates.
C) It helps solve trade problems without trade restrictions.
D) It is flexible and can easily adjust to shocks.
E) All of the above could be used as arguments supporting the current system.
B
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One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries
Indicate whether the statement is true or false
The U.S. producer Boeing, and the European Airbus are contemplating the next generation mid-sized fuel efficient generation of air carrier
If both produce their respective models, then each would lose $50 million (because the world market is just not large enough to enable either to capture potential scale economies if they had to share the world market). If neither produce, then each one's net gain would of course be zero. If either one produces while the other does not, then the producer will gain $500 million. (a) What is the correct strategy for either company? (b) What is the correct strategy for a government seeking to maximize national economic welfare? (c) If a national government decides to subsidize its aircraft producer, how high should be the subsidy?
The classical approach to macroeconomics assumes that
A) wages, but not prices, adjust quickly to balance quantities supplied and demanded in markets. B) wages and prices adjust quickly to balance quantities supplied and demanded in markets. C) prices, but not wages, adjust quickly to balance quantities supplied and demanded in markets. D) neither wages nor prices adjust quickly to balance quantities supplied and demanded in markets.
The lending ability of the banking system increases if the:
a. Reserve ratio rises. b. Preferred asset ratio for customary reserves rises. c. Preferred asset ratio for near money rises. d. Demand to hold money rises. e. All of the above.