If speculators with Swiss francs believed the yen was going to depreciate against the dollar, they would most likely: =
A. Purchase euros.
B. Purchase dollars.
C. Not participate in foreign exchange markets because of the volatility.
D. Purchase yen.
Answer: B
Economics
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The economic costs of forming a currency union will be lower whenever:
A) labor market integration is lower. B) labor market integration is higher. C) labor markets are not integrated. D) wage rigidities are present.
Economics
A policy maker who is concerned with the rate of inflation may not choose to reduce it because ________.
A. the government can only affect unemployment, not the rate of inflation B. reducing the rate of inflation means that the unemployment rate will increase C. reducing the rate of inflation means reducing taxes D. reducing the rate of inflation requires an increase in government spending
Economics