As Europe explored monetary union, evidence to date suggests that increased variability in exchange rates
A) reduces foreign trade and investment.
B) increases foreign trade and investment.
C) does not seem to have an impact on foreign trade and investment.
D) hurts foreign investment but not trade.
E) hurts foreign trade but not investment.
C
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During a recession, unemployment rises and total output of the economy rises.
Answer the following statement true (T) or false (F)
Inputs, or factors of production, include
A. labor. B. machinery. C. natural resources. D. All of the responses are correct.
Increases in autonomous expenditure induce ________ in aggregate expenditure thereby making the multiplier ________
A) further increases; greater than one B) further increases; unnecessary C) further increases; less than one D) a decrease; less than one E) a decrease; greater than one
Food stamps are government-issued "money" that can be used
a. by low-income people to buy food in supermarkets and restaurants b. to exchange for real money to be used for purchases of food c. by low-income people at most food stores to buy specific food items d. by foreign tourists to buy imported foods e. by low-income people to buy only bread, milk, and cheese from government outlets