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

Author Question: A currency system in which exchange rates are determined in free markets is called a A) gold ... (Read 106 times)

809779

  • Hero Member
  • *****
  • Posts: 579
on: Jun 29, 2018
A currency system in which exchange rates are determined in free markets is called a
 
  A) gold standard. B) flexible exchange rate system.
  C) fixed exchange rate system. D) all of the above

Question 2

The above diagram has a demand for money curve. Suppose the Fed initially sets the quantity of money equal to 0.6 trillion. Draw the supply of money curve in the figure.
 
  What is the equilibrium interest rate? Now suppose the Fed increases the quantity of money to 0.9 trillion. Draw the new supply curve. What is the new equilibrium interest rate?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

josephsuarez

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

The initial supply of money curve is MS1 and the equilibrium interest rate is 6 percent. When the Fed increases the quantity of money, the supply of money curve shifts to MS2 and the equilibrium interest rate falls to 4 percent.


809779

  • Member
  • Posts: 579
Reply 2 on: Jun 29, 2018
Gracias!

irishcancer18

  • Member
  • Posts: 310
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Free Energy Free Energy
A plastic mock-up of a Honda VTEC system that uses two different camshaft profiles: one for low ... A plastic mock-up of a Honda VTEC system that uses two different camshaft profiles: one for low ...
Pressure drop after 10 minutes on a normal port fuel-injection system. Pressure drop after 10 minutes on a normal port fuel-injection system.
Binding site variation for transcription factor CEBPA along gene PCK1 as determined by ChIP Binding site variation for transcription factor CEBPA along gene PCK1 as determined by ChIP
Development of the Integumentary System Development of the Integumentary System
Respiratory system, Urinary and Nervous systems Respiratory system, Urinary and Nervous systems
Video: Proteins Defined, Hierarchy & Composition of Cells

For a complete list of videos, visit our video library