Author Question: When does the degree of international capital mobility affect the qualitative change in the exchange ... (Read 71 times)

ap345 · **on:** Jun 30, 2018

When does the degree of international capital mobility affect the qualitative change in the exchange rate (assume flexible exchange rates)?
a. The degree of international capital mobility is important when analyzing changes in monetary policy.
b. The degree of international capital mobility is important when analyzing changes in fiscal policy.
c. The degree of international capital mobility never affects the qualitative change in the exchange rate.
d. The degree of international capital mobility affects the qualitative change in the exchange rate when analyzing changes in the monetary policy as well as changes in the fiscal policy.

Question 2

Which of the following is not a function of money?
a. Medium of exchange.
b. Standard of deferred payment.
c. Unit of account.
d. Store of value.
e. All of the above are functions of money.