Author Question: With flexible exchange rates, perfect asset substitutability, and perfect capital mobility, ... (Read 114 times)

Yi-Chen

  • Hero Member
  • *****
  • Posts: 550
With flexible exchange rates, perfect asset substitutability, and perfect capital mobility, expansionary monetary policy will cause
 
  A) income to rise, interest rates to fall, and the domestic currency to depreciate.
  B) income to fall, interest rates to rise, and the domestic currency to appreciate.
  C) income to rise, interest rates to remain unchanged, and the domestic currency to appreciate.
  D) income to rise, interest rates to remain unchanged, and the domestic currency to depreciate.

Question 2

Intra-industry trade is most common in the trade patterns of
 
  A) the industrial countries of Western Europe.
  B) the developing countries of Asia and Africa.
  C) raw material producers.
  D) China with the rest of the world.
  E) labor-intensive products.



beccamahon

  • Sr. Member
  • ****
  • Posts: 338
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

For a complete list of videos, visit our video library