Which of the following, according to the Maastricht treaty, was a condition for participating in the common currency area?
A) a relatively small budget deficit-to-GDP ratio
B) at least half the population of the country must speak German, French and English
C) a promise that any future devaluations will be announced in advance
D) the replacement of the country's prime minister with an appointee of the new "United States of Europe"
E) a relatively small amount of foreign aid to countries outside the area
A
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Given that all countries have the same Cobb-Douglas production function, i.e. Y/N = (K/N)b, where b = 0.5, then a ten-fold difference in per capita income requires a difference in capital per capita by a factor of
A) 10. B) 100. C) 1000. D) 10,000.
Suppose a country has a larger increase in debt in 2014 than it had in 2013 . Then other things the same,
a. the supply of loanable funds shifts rightward and the interest rate falls. b. the supply of loanable funds shifts leftward and the interest rate rises. c. the demand for loanable funds shifts leftward and the interest rate falls. d. the demand for loanable funds shifts rightward and the interest rate rises.