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

Author Question: Suppose policy makers are pursuing a policy to fix the exchange rate. In such a system with perfect ... (Read 177 times)

strangeaffliction

  • Hero Member
  • *****
  • Posts: 660
Suppose policy makers are pursuing a policy to fix the exchange rate. In such a system with perfect capital mobility, an open market sale of domestic bonds by the domestic central bank will eventually result in
 
  A) a permanent increase in the monetary base.
  B) a permanent reduction in the monetary base.
  C) a gradual reduction in the domestic interest rate.
  D) a change in the composition of the monetary base.

Question 2

A reduction in the saving rate will not affect which of the following variables in the long run?
 
  A) output per worker
  B) the growth rate of output per worker
  C) the amount of capital in the economy
  D) capital per worker
  E) none of the above



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Carissamariew

  • Sr. Member
  • ****
  • Posts: 359
Answer to Question 1

D

Answer to Question 2

B




strangeaffliction

  • Member
  • Posts: 660
Reply 2 on: Jun 30, 2018
Excellent


Hdosisshsbshs

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

For a complete list of videos, visit our video library