A. None of these arguments they are all arguments in support of the UK joining the UMU
B. The characteristics of the UK housing market make UK consumers expenditure very sensitive to changes in interest rates
C. The UK risks exclusion from the Euroland capital market with damaging consequences with damaging
D. The UK needs to be a member of the EMU in order to continue to attract such large share of foreign direct investment in EU countries
Related Mcqs:
- Which of the following is not an argument put forth by economists in support of the use of advertising ?
A. Advertising increases competition
B. Advertising provides information to customers about prices, new products and location of retail outlets.
C. Advertising provides a creative outlet for artists and writers
D. Advertising provides new firms with the means to attract customers from existing firms. - To try to overcome the free rider problem, the members of EMU signed ?
A. the stability and growth pack
B. the European solidarity packs
C. the exchange rate mechanism pact
D. the responsibility and growth pack - The Maastricht criteria for entry to the EMU are that applicants should have ?
A. low inflation
B. low interest rates
C. stable nominal exchange rates
D. budget deficits and government debt under control
E. all of the above - In the EMU a country’s competitiveness can change because of ?
A. interest rate adjustment
B. central bank intervention in the Forex
C. domestic wage and price adjustment
D. devaluation - A high degree of real wage flexibility will tend to reduce the cost to a country of joining a currency union because ?
A. All of the reasons given in these answers are correct
B. real wages fall rapidly in a recession and the economy moves quickly back to long run equilibrium so limiting the duration of the recession even when exchange rate adjustment is not possible
C. workers will move from a country in which aggregate demand falls to other countries of the currency union, and so unemployment remains lower than it otherwise would
D. real wages fall and so offset the inflationary effect of switching from the old currency to the new common currency - Which of the following is not an argument for protectionism ?
A. To protect infant industries
B. To increase the level of imports
C. To Protect strategic industries
D. To improve the balance of payments - Joining with foreign companies to produce or market products and services is called ?
A. direct exporting
B. indirect exporting
C. licensing
D. joint venturing - The argument that U.S current account deficits cause net job losses for Americans ?
A. is true by definition in all possible circumstances
B. is supported by recent U.S history
C. focuses only on the overall economy and is thus always true
D. fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending - The national security argument for protection is more likely to be valid when ?
A. The purpose is to maintain protection for an indefinite time period
B. The industry is characterized by increasing returns to scale
C. The economy operates during a recession
D. The protected industry provides invaluable goods during periods of war - According to the _____ argument for protection, tariffs can shield new industries from import competition until they have grown strong and efficient enough to withstand the competition by foreign producers ?
A. scientific tariff argument
B. infant industry argument
C. beggar they neighbor argument
D. foreign dumping argument
