The currency crisis of 1992 caused France and a number of other countries to choose between
A) a single currency for the EU and keeping their own currency.
B) doing the right thing for their domestic economy and defending the exchange rate.
C) lowering interest rates and reducing unemployment.
D) competitive devaluations and falling unemployment.
B
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Asset demand for money is holding money
A) as a medium of exchange to make payments. B) to meet unplanned expenditures and emergencies. C) to speculate on the stock market and bonds. D) as a store of value instead of other assets.
Because workers in the United States work fewer hours per week, on average, than they did over 100 years ago,
A) workers in the United States are worse off than they were over 100 years ago. B) GDP is lower than it would be if U.S. workers worked the same workweek they had 100 years ago. C) GDP is higher than it would be if U.S. workers worked the same workweek they had 100 years ago. D) workers in the United States earn less income than they did over 100 years ago.
If the MPS = .25, and investment falls from $100 to $75, real GDP will decrease by:
a. $25. b. $75. c. $150. d. $125. e. $100.
Which of the following describes how import quotas on sugar generally affect producer surplus as shown in Exhibit 2?
a. eliminated
b. unchanged
c. decreased
d. increased