The creation of the European Monetary Union in 1999 lowered nominal interest rates in countries like Italy, because:
a. The creation of a supranational central bank reduced expected inflation.
b. The supranational central bank increased the money supply rapidly, thereby causing interest rates to fall.
c. Actually, interest rates in Italy exploded after the creation of the European Monetary Union, due to the lack of initial confidence in the European Central Bank.
d. All of the above.
e. None of the above.
.A
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For a product with a constant or gently increasing opportunity cost of producing additional units, as more is produced, we expect that
A) demand is price elastic. B) supply is price elastic. C) demand is price inelastic. D) supply is price inelastic. E) demand is unit elastic.
A monopolistic competitor's demand curve becomes less elastic as new entry occurs
a. True b. False Indicate whether the statement is true or false