Philosophical foundations of the European model were provided by:
a. Adam Smith
b. David Ricardo
c. The theory of social market economy
d. Mercantilism
e. Both c and d
Question 2
Assume the central bank lowers the discount rate. What is the net effect on the unemployment rate (assume fixed exchange rates)? Answer assuming all the adjustments have worked their way through the macroeconomic system, and it is in equilibrium.
a. The unemployment rate rises.
b. The unemployment rate falls.
c. The unemployment is not affected.
d. The change in the unemployment rate depends on the degree of international capital mobility.
Western European red deer
Lab: Amoeba Model
Kiki Smith, Guide.
Jacques-Louis David, Napoleon Crossing the Saint-Bernard.
A Mental Model