Other things equal, a broad shift to expecting depreciation of the euro will lead to
A. an increase in official exchange market intervention by the euro area monetary authorities.
B. an inflow of capital to Europe.
C. a lowering of exports of European goods and services.
D. a decrease in the demand for euro-denominated financial assets.
Answer: D
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Which of the following factors will make it easier for a labor union to increase the wages of its members?
a. a highly inelastic demand for the products produced by the union labor b. a readily available supply of similar products produced by nonunion labor c. low tariffs and strong competition from foreign firms producing the products supplied by the union labor d. a reduction in the demand for the products produced by the union labor
One application of the production possibilities concept has been to explain the difference in growth patterns of a nation with a high level of investment (Alta) and an equivalent nation with a low level of investment (Zorn). Use the concept to explain
why Alta’s economic growth would be greater than that of Zorn over time. Please provide the best answer for the statement.