Advocates of floating rate suggested it is favorable for economies for all of the following reasons EXCEPT
A) it discourages attack from foreign exchange speculators because of the fact that exchange rate adjustment is immediate.
B) it helps stabilize the shock effect on unemployment in case of economic changes such as fall in export demand.
C) it automatically matches the domestic inflation with ongoing foreign inflation.
D) it gives every country the opportunity to guide its own monetary conditions at home.
E) it brings the LR exchange rate to the level predicted by PPP without government policy decisions.
C
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General sales taxes totaled 226.7 billion dollars as a source of state revenue in 2008.
A. True B. False C. Uncertain
According to Figure 2.5, the United States civilian employment ratio in June 2013 was ________
A) 66.7% B) 43.8% C) 59% D) 64.0% E) none of the above
An increase in unemployment insurance benefits will:
A. increase job search efforts of unemployed workers. B. decrease the demand for labor. C. increase the demand for labor. D. decrease job search efforts of unemployed workers.
A free market economy is one in which ________.
A) the government or other centralized group determines what to produce B) individuals determine what to produce with some level of government involvement C) a tightly knit social network barters and trades for goods at a market D) individuals and private firms make decisions based on consumer needs and wants E) privately owned, profit-seeking enterprises are converted to government-owned production and services