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

Author Question: The nominal interest rate in Autarkia has risen sharply after a change in a government policy. How ... (Read 89 times)

Wadzanai

  • Hero Member
  • *****
  • Posts: 528
on: Jun 30, 2018
The nominal interest rate in Autarkia has risen sharply after a change in a government policy. How will this affect the economy if the wages in the country are downwardly rigid?
 
  What will be an ideal response?

Question 2

Refer to Figure 18.3. In autarky, the maximum amount of pogo sticks that Livonia can produce is
 
  A) 120. B) 100. C) 80. D) 40.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nanny

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 30, 2018
Answer to Question 1

If the nominal interest rate in Autarkia rises sharply after a change in government policy, both consumption and investment will fall. As a result, labor demand will fall. If wages are downwardly rigid, this will lead to a large increase in unemployment. As more workers become unemployed, the number of mortgage defaults, household bankruptcies, and firm bankruptcies will increase. This, in turn, further reduces consumption and investment.

Answer to Question 2

B


Wadzanai

  • Member
  • Posts: 528
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

sailorcrescent

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

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

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

A nurse adjusts the rate of a client’s IV. A nurse adjusts the rate of a client’s IV.
This chart illustrates the “drip down” model of government. In this, politics is formed by the soc This chart illustrates the “drip down” model of government. In this, politics is formed by the soc
Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
Defining Climate Change Defining Climate Change
How to calculate present value using the compound interest formula (Question 1) How to calculate present value using the compound interest formula (Question 1)
Income per Capita versus Total Fertility Rate Income per Capita versus Total Fertility Rate
Video: How does asthma work?And How do you treat asthma?

For a complete list of videos, visit our video library