Author Question: After continuing crises in 1993, the EMS countries A) agreed to entirely abandon the system. B) ... (Read 69 times)

Davideckstein7 · **on:** Jun 30, 2018

After continuing crises in 1993, the EMS countries

A) agreed to entirely abandon the system.
B) stood firm, refusing to adjust central parities.
C) narrowed the band of allowable fluctuations around central parities.
D) removed France from its leading role in the system.
E) widened the band of allowable fluctuations around central parities.

Question 2

At the current steady state capital-labor ratio, assume that the steady state level of per capita consumption, (C/N), is greater than the golden rule level of steady state per capita consumption. Given this information, we can be certain that

A) a reduction in the saving rate will cause a decrease in the steady state level of per capita consumption ((C/N)).
B) an increase in the capital-labor ratio will cause an increase in (C/N).
C) the capital labor ratio will tend to decrease over time.
D) the capital labor ratio will tend to increase over time.
E) a reduction in the saving rate will have an ambiguous effect on (C/N).