Individual supply curves are summed vertically to obtain the market supply curve

Prior to 2008, some Eurozone nations were______; others were ______, which resulted in ______.

A) large external debtors; large external creditors; a credit-fueled boom B) irresponsible; trying to pick up the slack; lackluster overall performance C) inflation hawks; inflation biased; overall mild inflation D) worried the ECB was not minding the situation; not worried at all; some nations exiting the Eurozone

To maintain a fixed exchange rate via intervention in the markets, a government should:

a. be ready to crack down on illegal traders. b. be ready to buy the home currency with foreign currency reserves when the home currency's value declines. c. be ready to sell the home currency when the home currency's value declines. d. be ready to borrow funds from international banks when the home currency's value declines.