How did the use of the euro limit the use of monetary policy by European nations severely affected by the Financial Crisis of 2007-2009?
What will be an ideal response?
Before the euro, the central banks of those countries would have responded to the recession by allowing their currencies to depreciate, thereby boosting exports and reducing imports. Each country also could have expanded its monetary base. But these options for fighting recession were no longer available.
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Which of the following is an example of an investment, as described in Chapter 12 of your textbook?
A) The government builds a dam to have a source of hydroelectric power. B) A student attends college. C) A firm builds a new plant. D) all of the above
Theory A predicts that the higher the opportunity cost of having a child, the fewer children a woman will have. Which of the following is evidence against the theory if opportunity cost is measured in terms of foregone salary?
A) women with high-paying jobs have more children than women with low-paying jobs. B) women with low-paying jobs have more children than women with high-paying jobs. C) men married to women with high-paying jobs want more children than men married to women with low-paying jobs. D) the mothers of women with high-paying jobs will want their daughters to have children more than the mothers of women with low-paying jobs will want their daughters to have children. E) none of the above