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 87 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
Excellent

sarah_brady415

  • Member
  • Posts: 328
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Risk for falls cont'd Risk for falls cont'd
Assessing risk for infection in adults Assessing risk for infection in adults
Risk Factors of Osteoporosis Risk Factors of Osteoporosis
How at Risk Are You? How at Risk Are You?
A blade and assorted plates for a standard grinder A blade and assorted plates for a standard grinder
Assume z is a standard normal random variable. What is the value of z if the area to the right ... Assume z is a standard normal random variable. What is the value of z if the area to the right ...
Video: Haustral churning, Gastrocolic reflex and mass peristalsis & Defecation

For a complete list of videos, visit our video library