1
ANSWERS TO END-OF-CHAPTER PROBLEMS likely involve more pain in the short run since some banks and
firms would be forced to close.
CHAPTER 1
Quick Check e. Although the Euro will remove obstacles to free trade between
1. a. True. European countries, each country will be forced to give up its
b. True. own monetary policy.
c. True. Dig Deeper
d. Uncertain. It is true that the growth of output per worker 4. This is a discussion question, so answers will vary. Based on the
increased in the mid-1990s, but discussion in the text, there are
economists disagree about the degree to which this increase in clear similarities in the policy responses of the U.S. and Japanese
governments. Central banks in both countries reduced interest rates,
growth will persist. The
and governments in both countrie
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