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Author Question: In an open economy with fixed exchange rates, monetary policy is most effective at increasing real ... (Read 55 times)

mia

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on: Jun 30, 2018
In an open economy with fixed exchange rates, monetary policy is most effective at increasing real income if
 
  A) capital mobility is high.
  B) capital mobility is low.
  C) capital mobility is perfect.
  D) monetary policy is ineffective with fixed exchange rates.

Question 2

When someone sells a bond at a discount, the holder of the bond earns ________ with the purchase.
 
  A) a capital gain
  B) a capital loss
  C) market value
  D) interest


Perkypinki

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

D

Answer to Question 2

A


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