When a nation chooses to fix or float, it should consider:
A) only its domestic banks, importers, and exporters.
B) only whether it has a great deal of economic integration.
C) only whether it has similar circumstances in terms of demand or supply shocks with its trading partners.
D) both the level of economic integration and the similarity of demand or supply shocks.
Ans: D) both the level of economic integration and the similarity of demand or supply shocks.
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Which of the following should help reduce the adverse selection problem?
A) the employer mandate provision of the Affordable Care Act B) the individual mandate provision of the Affordable Care Act C) keeping high-risk and low-risk individuals in the same health insurance pool D) all of the above
A true cost-of-living adjustment (COLA) in response to a change in prices would compensate consumers so that they would be able to
A) purchase the same bundle they purchased before prices changed. B) achieve the same level of utility they did before prices changed. C) face the same choices they did before prices changed. D) achieve an increase in utility that is equal to the rate of inflation.