Explain why after, say Norway unilaterally pegs the krone to the euro, domestic money market disturbances will no longer affect domestic output despite the continuation of float-rate regime against non-euro currencies
What will be an ideal response?
Because Norway's interest rate must equal the euro interest rate, any pure shifts in the AA curve (see chapter 19 ) will result in immediate reserve inflows or outflows that leave Norway's interest rate unchanged.
Economics
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The above figure shows the U.S. market for wheat. With international trade, the gain in total surplus is equal to ________
A) area A B) area B + area C C) area D D) area C + area F E) area C + area D + area F
Economics
Briefly describe changes in life expectancy, average height, and infant mortality in the United States since 1850
What will be an ideal response?
Economics