The "troika" that helped Greece avoid defaulting on its debt included all of the following EXCEPT the
B) European Central Bank.
C) World Bank.
D) European Commission.
Which of the following countries does NOT use the euro?
D) United Kingdom
One reason for the controversy surrounding the decision by the European Central Bank to buy Greek bonds was that
A) it may increase moral hazard by encouraging other European governments to issue more debt than private investors were willing to buy.
B) it may increase adverse selection by encouraging other European governments to issue more debt than private investors were willing to buy.
C) it may result in higher risk premiums as private investors anticipate a default by Greece.
D) it may worsen the Greek recession by increasing Greek interest rates.
How can a country with a fixed nominal exchange rate,such as Greece,experience a lower real exchange rate?
A) by experiencing higher inflation than its partners
B) by experiencing deflation if its partners have low inflation rates
C) by limiting the growth of productivity
D) by increasing wages at a faster rate than inflation