Assume the central bank pursues contractionary monetary policy. ...

[audragclark]

Assume the central bank pursues contractionary monetary policy. What is the first round effect on the value of the domestic currency, if there is low mobility in the international capital markets?
 a. The value of the currency rises.
  b. The value of the currency falls.
  c. The value of the currency is unaffected.
  d. The change in the value of the currency is ambiguous.

Question 2

Which of the following is not a function of money?
 a. Insurance against unexpected inflation.
  b. Legal tender.
  c. Insurance against expected inflation.
  d. Unvarying unit of value.
  e. None of the above is a function of money.

[tsternbergh47]

Answer to Question 1

.A

Answer to Question 2

.E

[audragclark]

YES! Correct, THANKS for helping me on my review

[amandanbreshears]

Thanks for the timely response, appreciate it