Author Question: A number of situations can arise that will cause individuals to believe that policy makers might ... (Read 30 times)

aabwk4

  • Hero Member
  • *****
  • Posts: 593
A number of situations can arise that will cause individuals to believe that policy makers might change the pegged value of a fixed exchange rate. Suppose financial market participants expect a revaluation in the future. The interest parity condition will be maintained if which of the following policy actions are taken in the current period?
 
  A) a reduction in the pegged value of the domestic currency
  B) an increase in i
  C) a reduction in i
  D) an increase in government spending

Question 2

In the following production function, Y = f(K, NA), suppose A increases by 20. This 20 increase in A implies that
 
  A) the same output can be produced with 20 less labor.
  B) the effective quantity of labor has increased by 20.
  C) output will increase by less than 20.
  D) all of the above
  E) both A and C.



scrocafella

  • Sr. Member
  • ****
  • Posts: 346
Answer to Question 1

C

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

The calories found in one piece of cherry cheesecake could light a 60-watt light bulb for 1.5 hours.

For a complete list of videos, visit our video library