Which of the Following Statements Is True of the European

question 40

Multiple Choice

Which of the following statements is true of the European Union's Parliament?

• A) It can assent to trade agreements with countries outside the European Union.
• B) It performs the function of final decision maker in conflicts between European Union law and individual member states.
• C) It maintains price stability by lowering or raising interest rates.
• D) It coordinates the economic policies of member states.

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Definitions:

Price Elastic

Describes how sensitive demand for a product or service is to changes in its price; high elasticity indicates significant demand change with price fluctuations.

Nondiscretionary

Pertaining to expenses that are essential and not subject to personal choice, such as food, housing, and utilities.

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at different prices.

Consumer Incomes

The financial resources available to consumers, influencing their ability to purchase goods and services.