Author Question: Suppose a country is pursuing a fixed exchange rate regime with imperfect capital mobility. The ... (Read 109 times)

bclement10 · **on:** Jun 30, 2018

Suppose a country is pursuing a fixed exchange rate regime with imperfect capital mobility. The ability of that country to move its domestic interest rate while maintaining its exchange rate will depend on

A) the degree of development of its financial markets.
B) the degree of capital controls.
C) the amount of foreign exchange it holds.
D) all of the above
E) both A and B

Question 2

Which of the following will cause an increase in output per worker in the long run?

A) an increase in the saving rate
B) a reduction in the depreciation rate
C) an increase in the stock of human capital
D) all of the above