Explain why even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows
What will be an ideal response?
The main reason is through diversification. If Norway's capital market is integrated with those of the EMU neighbors, Norwegians will invest some of their wealth in other countries while at the same time part of Norway's capital stock will be owned by foreigners.
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Deflation financially ________ borrowers of money and financially ________ lenders of money
A) benefits; benefits B) benefits; harms C) harms; benefits D) harms; harms
Monetary policy consists of
A. actions taken by both the legislative and executive branches of government to control the nation's money supply. B. actions taken by Congress to control the nation's money supply. C. actions taken by the Federal Reserve System to control the nation's money supply. D. actions taken by the executive branch of government to control the nation's money supply.
In order to practice price discrimination, a firm must be in a market such that the consumers in its market:
A. all have identical tastes. B. all have identical price elasticities of demand. C. have different price elasticities of demand. D. have the same demand for its product.
Refer to the data. If year 2 is chosen as the base year, the price index for year 1 is:
Assume an economy that is producing only one product. Output and price data for a three- year period are as follows. Answer the question on the basis of these data.
A. 80.
B. 100.
C. 120.
D. 20.