In 1990, Britain joined the ERM. If the German Bundesbank increased interest rates, what will Britain have to do in order to maintain its exchange rate peg?
A) The British would be forced to increase their interest rates.
B) The British would increase their money supply.
C) The British would have to lower their interest rates.
D) The British government would have to use expansionary fiscal policy.
Answer: A) The British would be forced to increase their interest rates.
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Which of the following is likely to happen when the banking system of a country recuperates after a recession?
A) Interest rates will increase. B) Household consumption expenditure will fall. C) Firms will hire more workers. D) The aggregate price level will fall.
According to the Bureau of Labor Statistics, among workers ages 45 to 54, the median job tenure is
A) longer for men than it is for women. B) longer for women than it is for men. C) roughly equal for all men and women. D) roughly equal for men and women closer to age 45, but longer for women closer to age 54 than men closer to age 54.