If banks pay back their borrowings from the central bank:
a. The monetary base will decrease.
b. Excess reserves will rise.
c. The M2 multiplier will fall.
d. The monetary base will rise.
Question 2
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and nominal value of the domestic currency falls.
b. The real risk-free interest rate falls, and nominal value of the domestic currency falls.
c. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same.
d. The real risk-free interest rate rises, and nominal value of the domestic currency rises.
e. There is not enough information to determine what happens to these two macroeconomic variables.
The Lion Gate of Mycenae (detail)â€â€Âtwo lionesses flank the central column, c. 1300 B
Herniated disk. A herniated disk is a protrusion of the disk’s gelatinous center, called the nucleus
The central and peripheral nervous system
Use palms and fingers to brush off along the back of the body from shoulders to feet with long ...
Acid–Base Balance