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Author Question: On the graph above, which pair of points best represents a scenario in which the nominal interest ... (Read 54 times)

D2AR0N

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  • Posts: 561
on: Jun 30, 2018
On the graph above, which pair of points best represents a scenario in which the nominal interest rate and expected inflation decline equally?
 
  A) I to H
  B) G to K
  C) I to J
  D) K to F
  E) J to H

Question 2

In a two-period model with production, a permanent increase in domestic government spending
 
  A) increases domestic output and increases the current account surplus.
  B) increases domestic output and decreases the current account surplus.
  C) decreases domestic output and increases the current account surplus.
  D) decreases domestic output and decreases the current account surplus.


jennafosdick

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

D

Answer to Question 2

A


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