Even though it may seem that nations have a wide variety of policy options to stabilize their economies, there are a number of issues to be considered and overcome. Which of the following is NOT an issue confronting policy makers?
A) the desire to maintain fixed exchange rates or membership in a pegged currency bloc
B) long and uncertain time lags when policy effects will occur
C) the pass-through issue, when little effect occurs on the real effective exchange rate
D) international controls that limit the ability of any nation to determine its exchange rate policy
Ans: D) international controls that limit the ability of any nation to determine its exchange rate policy
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In the economic way of thinking, countries are poor because they lack
A) money. B) access to the New York Stock Exchange. C) foreign aid. D) productive knowledge and ideas. E) effective minimum wage legislation.
Nearly a quarter of China's 1.3 billion people are under the age of 15. How will this affect high school enrollment over the next fifteen years? The labor market over the next fifteen years?
What will be an ideal response?