Advocates of floating rates pointed out that
A) removal of the obligation to peg currency values would restore monetary control to central banks.
B) imposing of the obligation to peg currency values would restore monetary control to central banks.
C) removing of the obligation to peg currency values would restore fiscal control.
D) imposing of the obligation to peg currency values would restore fiscal control.
E) imposing of the obligation to peg currency would restore monetary control to the consumer.
Question 2 - The European Economic and Monetary Union
A) set up a single currency and sole bank for European economic monetary policy.
B) eliminated all barriers to trade such as tax differentials between borders.
C) produced a single government for handling European affairs.
D) created the Common Agricultural Pact.
E) eliminated all local currencies in Western Europe.
Question 3 - Tariff rates on products imported into the U.S.
A) have dropped substantially over the past 50 years.
B) were prohibited by the Constitution.
C) reached an all time high in 2002.
D) have risen steadily since 1920.
E) were the government's main source of income in 2006.
Question 4 - An increase in the exchange rate from 2.00 = 1 to 2.20 = 1 is a
A) 10 depreciation of the euro with respect to the dollar.
B) 10 depreciation of the dollar with respect to the euro.
C) 10 appreciation of the dollar with respect to the euro.
D) None of the above.
Question 5 - Refer to above figure. Why would workers not shift from agriculture to manufacturing in the initial situation where wages are higher in the latter?
What will be an ideal response?
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