Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and reserve-related (central bank) transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium.
a. The real risk-free interest rate remains the same and reserve-related (central bank) transactions become more positive (or less negative).
b. The real risk-free interest rate falls and reserve-related (central bank) transactions become more negative (or less positive).
c. The real risk-free interest rate falls and reserve-related (central bank) transactions remain the same.
d. The real risk-free interest rate and reserve-related (central bank) transactions remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 2
A nation can determine how close it is to the classical range by considering its:
a. Export position.
b. Net export position.
c. Exchange rate.
d. None of the above.
(a) Mammal species from central Saskatchewan differ greatly in their isotopic signatures. (b) There
The central nervous system
Base pairing between pre-mRNA, U1 snRNA, and U2 snRNA early in the splicing proc
Battle scene from The Birth of a Nation, directed by D. W. Griffith.
Bank reconciliation form.
Raman has a line of credit loan with the ICICI bank. The initial loan balance was $72000.00. ...