This topic contains a solution. Click here to go to the answer

Author Question: All of these events will cause an increase (shift to the right) in the demand for U.S. dollar real ... (Read 34 times)

tfester

  • Hero Member
  • *****
  • Posts: 534
All of these events will cause an increase (shift to the right) in the demand for U.S. dollar real loanable funds EXCEPT:
 a. A decrease in the U.S. real risk-free interest rate.
  b. An increase in U.S. business investments.
  c. An increase in U.S. government budget deficits.
  d. An increase in foreign direct investments (e.g., building Greenfield plants) in the United States.
  e. All the above increase the demand of real loanable funds.

Question 2

Assume the government reduces government spending. What is the first round effect on the components of the balance of payments (assume low international capital mobility and fixed exchange rates; also assume that before the government action all the components were 0)?
 a. Current international transactions balance and reserves account become positive; net nonreserve international borrowing/lending balance becomes negative.
 b. Current international transactions balance becomes positive; net nonreserve international borrowing/lending balance and reserves account become negative.
 c. Net nonreserve international borrowing/lending balance becomes positive; current international transactions balance and reserves account becomes negative.
 d. Net nonreserve international borrowing/lending balance and reserves account become positive; current international transactions balance becomes negative.
 e. Reserves account becomes positive; current international transactions balance and net nonreserve international borrowing/lending balance become negative.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bimper21

  • Sr. Member
  • ****
  • Posts: 309
Answer to Question 1

.A

Answer to Question 2

.B




tfester

  • Member
  • Posts: 534
Reply 2 on: Jun 30, 2018
Wow, this really help


cassie_ragen

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

For a complete list of videos, visit our video library