An adjustment of central parities in the EMS is called a
A) realignment.
B) nominal appreciation or nominal depreciation.
C) real appreciation or real depreciation.
D) re-coupling.
E) re-paritization.
Question 2
As an economy adjusts to an decrease in the saving rate, we would expect output per worker
A) to decrease at a constant rate and continue decreasing at that rate in the steady state.
B) to decrease at a permanently higher rate.
C) to increase at a permanently higher rate.
D) to return to its original level.
E) none of the above
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