This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A nation's market-risk premium rises if: a. The volatility (e.g., standard deviation) of expected ... (Read 71 times)

APUS57

  • Hero Member
  • *****
  • Posts: 571
on: Jun 30, 2018
A nation's market-risk premium rises if:
 a. The volatility (e.g., standard deviation) of expected inflation rises.
  b. The average expected inflation rate rises.
  c. Security maturities lengthen.
  d. All of the above.

Question 2

Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to real GDP and monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium.
 a. Real GDP rises and monetary base rises.
  b. Real GDP rises and monetary base falls.
  c. Real GDP and monetary base fall.
  d. Real GDP and monetary base remain the same.
  e. There is not enough information to determine what happens to these two macroeconomic variables.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

b614102004

  • Sr. Member
  • ****
  • Posts: 320
Reply #1 on: Jun 30, 2018
Answer to Question 1

.A

Answer to Question 2

.D


APUS57

  • Member
  • Posts: 571
Reply 2 on: Jun 30, 2018
Wow, this really help

kishoreddi

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Focus on older adults - risk for infection Focus on older adults - risk for infection
U.S. Cancer Risk—Racial Diversity U.S. Cancer Risk—Racial Diversity
ROM exercises on a patient’s wrist: radial deviation. ROM exercises on a patient’s wrist: radial deviation.
Some Standard Shapes of Greek Vessels Some Standard Shapes of Greek Vessels
Genes and Risk Factors for Alzheimer Disease Genes and Risk Factors for Alzheimer Disease
Risk of Down Syndrome (Trisomy 21) by Maternal Age Risk of Down Syndrome (Trisomy 21) by Maternal Age
Video: Green alga life cycle Animation

For a complete list of videos, visit our video library