Author Question: Other things remaining the same, a decrease in the real return on bonds causes the velocity of money ... (Read 94 times)

cherise1989

  • Hero Member
  • *****
  • Posts: 555
Other things remaining the same, a decrease in the real return on bonds causes the velocity of money to:
 a. Rise.
  b. Fall.
  c. Not change.

Question 2

Government surpluses are generally considered to be:
 a. Expansionary, but they have secondary effects through the foreign exchange market that are contractionary because they tend to raise the value of the domestic currency.
  b. Expansionary, but they have secondary effects through the real loanable funds market that are contractionary because they reduce the real risk-free interest rate.
  c. Contractionary, but they have mild secondary effects through the real loanable funds market that are expansionary because they reduce the real risk-free interest rate.
  d. Contractionary because they have primary and secondary effects that are contractionary.



paavo

  • Sr. Member
  • ****
  • Posts: 301
Answer to Question 1

.B

Answer to Question 2

.C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

For a complete list of videos, visit our video library