This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose policy makers are pursuing a policy to fix the exchange rate. In such a system with perfect ... (Read 76 times)

strangeaffliction

  • Hero Member
  • *****
  • Posts: 660
on: Jun 30, 2018
Suppose policy makers are pursuing a policy to fix the exchange rate. In such a system with perfect capital mobility, an open market sale of domestic bonds by the domestic central bank will eventually result in
 
  A) a permanent increase in the monetary base.
  B) a permanent reduction in the monetary base.
  C) a gradual reduction in the domestic interest rate.
  D) a change in the composition of the monetary base.

Question 2

A reduction in the saving rate will not affect which of the following variables in the long run?
 
  A) output per worker
  B) the growth rate of output per worker
  C) the amount of capital in the economy
  D) capital per worker
  E) none of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Carissamariew

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


strangeaffliction

  • Member
  • Posts: 660
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

billybob123

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Discipline-specific training can take years to perfect. Discipline-specific training can take years to perfect.
The accessory organs of the digestive system: the liver, gallbladder, and pancreas. Image shows the The accessory organs of the digestive system: the liver, gallbladder, and pancreas. Image shows the
The lymphatic system. Lymphatic vessels, major lymph nodes, and lymphatic organs. The direction of l The lymphatic system. Lymphatic vessels, major lymph nodes, and lymphatic organs. The direction of l
The Rate Law The Rate Law
Outline of the System That Controls Drinking Outline of the System That Controls Drinking
The Central Nervous System Includes the Brain and Spinal Cord The Central Nervous System Includes the Brain and Spinal Cord
Video: Neural regulation of mechanical digestion- CNS voluntary, ANS & ENS controlled involuntary movements

For a complete list of videos, visit our video library