Author Question: Based on the figure above, which of the following factors could lead the supply curve to shift ... (Read 70 times)

melly21297

  • Hero Member
  • *****
  • Posts: 565
Based on the figure above, which of the following factors could lead the supply curve to shift rightward from S0 to S2?
 
  A) a fall in foreign interest rates
  B) a fall in the U.S. interest rate
  C) a rise in the U.S. exchange rate
  D) a fall in the U.S. exchange rate
  E) a rise in expected future U.S. exchange rate

Question 2

Suppose in the money market the equilibrium nominal interest rate is 5 percent. If the Fed increases the quantity of money, what is the effect on the nominal interest rate?
 
  What will be an ideal response?



Melissahxx

  • Sr. Member
  • ****
  • Posts: 304
Answer to Question 1

B

Answer to Question 2

If the Fed increases the quantity of money, the supply of money curve shifts rightward and the nominal interest rate falls.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

For a complete list of videos, visit our video library