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

Author Question: A nation's monetary base changes when: a. Funds cross our imaginary line. b. The federal ... (Read 51 times)

mikaylakyoung

  • Hero Member
  • *****
  • Posts: 531
A nation's monetary base changes when:
 a. Funds cross our imaginary line.
  b. The federal government increases spending.
  c. Central banks swap currencies with each other.
  d. The central bank reduces the reserve requirement.
  e. None of the above.

Question 2

Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
 a. The real risk-free interest rate falls, and reserve-related (central bank) transactions become more negative (or less positive).
  b. The real risk-free interest rate rises, and reserve-related (central bank) transactions become more negative (or less positive).
  c. The real risk-free interest rate and reserve-related (central bank) transactions remain the same.
  d. The real risk-free interest rate rises, and reserve-related (central bank) transactions remain the same.
  e. There is not enough information to determine what happens to these two macroeconomic variables.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

brittiany.barnes

  • Sr. Member
  • ****
  • Posts: 321
Answer to Question 1

.A

Answer to Question 2

.D




mikaylakyoung

  • Member
  • Posts: 531
Reply 2 on: Jun 30, 2018
Wow, this really help


meganmoser117

  • Member
  • Posts: 303
Reply 3 on: Yesterday
Excellent

 

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

For a complete list of videos, visit our video library