A nation's country-risk premium increases if:
a. Central bank policies become more predictable.
b. Expected inflation becomes harder to predict.
c. Its government becomes more stable.
d. All of the above.
e. None of the above
Question 2
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium.
a. The real risk-free interest rate rises and GDP Price Index rises.
b. The real risk-free interest rate falls and GDP Price Index falls.
c. The real risk-free interest rate rises and GDP Price Index falls.
d. The real risk-free interest rate and GDP Price Index remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
The proportion of men and women with elevated blood pressure or taking hypertension medication incre
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Central portal of the west facade, Reims Cathedral, France.
Risk factors for suicide.
Major Degenerative Diseases of the Central Nervous System
GDP per Capita by Country Group, 1820–2008