What is the major problem in a currency union?
A) Money demand becomes more erratic.
B) Participating central banks may not agree on monetary policy.
C) It is akin to dollarization.
D) The capital account becomes difficult to define.
B
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Sticky Cakes is a bakery. A decrease in the wage rate that Sticky Cakes pays its workers
A) does not shift its MC curve or its ATC curve. B) shifts its MC curve downward but not its ATC curve. C) shifts both its MC curve and its ATC curve downward. D) does not shift its MC curve but shifts its ATC curve downward.
Unlike the Federal Reserve Bank of today, the First and Second Banks
(a) could create corporations by special franchise. (b) were generally supported by the rest of the banking community. (c) were direct competitors with private business. (d) provided a federal safety fund in times of well banking crisis.