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

Author Question: A nation's market-risk premium rises if: a. The volatility (e.g., standard deviation) of expected ... (Read 45 times)

APUS57

  • Hero Member
  • *****
  • Posts: 571
on: Jun 30, 2018
A nation's market-risk premium rises if:
 a. The volatility (e.g., standard deviation) of expected inflation rises.
  b. The average expected inflation rate rises.
  c. Security maturities lengthen.
  d. All 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 real GDP and monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium.
 a. Real GDP rises and monetary base rises.
  b. Real GDP rises and monetary base falls.
  c. Real GDP and monetary base fall.
  d. Real GDP and monetary base remain the same.
  e. There is not enough information to determine what happens to these two macroeconomic variables.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

b614102004

  • Sr. Member
  • ****
  • Posts: 320
Reply #1 on: Jun 30, 2018
Answer to Question 1

.A

Answer to Question 2

.D


APUS57

  • Member
  • Posts: 571
Reply 2 on: Jun 30, 2018
:D TYSM

miss_1456@hotmail.com

  • Member
  • Posts: 289
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

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?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

These species are all at risk of extinction. Species with slow life-h These species are all at risk of extinction. Species with slow life-h
Many hobbies and leisure activities have some risk of health-related injuries Many hobbies and leisure activities have some risk of health-related injuries
A1C Levels Predict Risk of Complications A1C Levels Predict Risk of Complications
Risk of death from motorcycle accidents (dashed lines) and passenger accidents (solid lines) per 100 Risk of death from motorcycle accidents (dashed lines) and passenger accidents (solid lines) per 100
When the O2S voltage rises above 450 mV, the PCM starts to control the fuel mixture based on ... When the O2S voltage rises above 450 mV, the PCM starts to control the fuel mixture based on ...
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
Video: Structures that affect circulation - arterioles and vasomotor responses

For a complete list of videos, visit our video library