Author Question: Regarding our rule-of-thumb for determining what causes changes in a nation's monetary base, which ... (Read 81 times)

olgavictoria

  • Hero Member
  • *****
  • Posts: 528
Regarding our rule-of-thumb for determining what causes changes in a nation's monetary base, which of the following is not true:
 a. Only central banks are above the line.
  b. To increase the monetary base, funds have to be moved from above the line to below the line.
  c. Any time a central bank changes one of its major monetary tools, the monetary base changes.
  d. For the monetary base to change, the central bank must, in some way, be involved.
  e. All the above are true.

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 quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
 a. The quantity of real loanable funds per time period rises, and GDP Price Index rises.
  b. The quantity of real loanable funds per time period falls, and GDP Price Index falls.
  c. The quantity of real loanable funds per time period rises, and GDP Price Index falls.
  d. The quantity of real loanable funds per time period and GDP Price Index remain the same.
  e. There is not enough information to determine what happens to these two macroeconomic variables.



katara

  • Sr. Member
  • ****
  • Posts: 305
Answer to Question 1

.C

Answer to Question 2

.A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

For a complete list of videos, visit our video library