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Author Question: Assume perfect capital mobility and a fixed exchange rate system. Then, an increase in government ... (Read 124 times)

crobinson2013

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on: Jun 30, 2018
Assume perfect capital mobility and a fixed exchange rate system. Then, an increase in government spending would shift the
 
  a. LM schedule to the left.
  b. BP schedule to the right.
  c. BP schedule to the left.
  d. IS schedule to the right.

Question 2

Today, the Federal Reserve System can contract the money supply by
 
  (a) increasing the discount rate.
  (b) increasing reserve requirements.
  (c) selling U.S. Treasury and federal agency securities.
  (d) engaging in all of the above.


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mceravolo

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

(d)


crobinson2013

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

mammy1697

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Reply 3 on: Yesterday
:D TYSM

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