The creation of the European Monetary Union in 1999 lowered nominal interest rates in countries like Italy, because:
a. Nations in the European Monetary Union were required to reduce the maturity of their debt issues.
b. Each nation now had a solid currency, and the markets knew that the central banks of these nations could create as much money as necessary to repay government debts.
c. Markets had more confidence in the European Central Bank than they did in the Bank of Italy.
d. All of the above.
e. None of the above.
.C
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Suppose that in a perfectly competitive market, firms are making an economic profit. In the long run, we know for sure that
a. some firms will leave the market b. the market price will rise c. the market supply curve will shift to the left d. economic profit will become zero e. production will be less than short-run production
In the Perspective on profit maximization and greed, greed is regarded as
a. inherent in capitalist societies b. an evil that must be addressed by all societies c. an expression of behavior that can be associated with all forms of profit maximization d. an acceptable mode of behavior in a zero-sum world e. having no negative consequences in a zero sum world