Chapter 1 - A Tour of the World Flashcards
1
Q
Why are low interest rates a potential issue?
A
a) limit the CB’s ability to respond to further negative shocks
b) hurt those who are saving for their retirement
c) may lead to excessive risk taking by investors to increase their returns
2
Q
Arguments for the EURO:
A
a) no more unpredictable changes in exchange rates
b) creation of a large economic power
