« previous next »

Author Question: Based on the figure above, which of the following factors could lead the supply curve to shift ... (Read 72 times)

melly21297

  • Hero Member
  • *****
  • Posts: 565
on: Jun 29, 2018
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
Reply #1 on: Jun 29, 2018
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
« previous next »
 

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Hand Washing Using an Alcohol-Based Rub Hand Washing Using an Alcohol-Based Rub
Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages
A Layer Based on Electrical Properties: The Ionosphere A Layer Based on Electrical Properties: The Ionosphere
How to write a sine function when given the amplitude, period, and phase shift How to write a sine function when given the amplitude, period, and phase shift
Vial Washing System - Risk Based Approach Vial Washing System - Risk Based Approach
Figure and Ground Figure and Ground
Video: Condensation and Hydrolysis Animation

For a complete list of videos, visit our video library