The currency crisis of 1992 caused France and a number of other countries to choose between
A) a single currency for the EU and keeping their own currency.
B) doing the right thing for their domestic economy and defending the exchange rate.
C) lowering interest rates and reducing unemployment.
D) competitive devaluations and falling unemployment.
E) the Maastricht Treaty and the Single European Act.
B
You might also like to view...
Suppose you pre-ordered a non-refundable movie ticket to X-Men: Apocalypse. On the day of the movie you decide that you would rather not go to the movie. According to economists, what is the rational thing to do?
A) You should go to the movie to maximize your utility. B) You should not waste resources. Since you have paid for the ticket you should watch the movie. C) Your should go to the movie to minimize your losses. D) Since the cost of the movie ticket is a sunk cost, it should not influence your decision. Your decision should be based solely on whether you want to see the movie or not.
During the early 1930s there were a number of bank failures in the United States. What did this do to the money supply? The New York Federal Reserve Bank advocated open market purchases. Would these purchases have reversed the change in the money supply and helped banks? Explain