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

Author Question: Assume that foreign capital flows from a nation increase due to political uncertainly and increased ... (Read 136 times)

clippers!

  • Hero Member
  • *****
  • Posts: 828
on: Jun 30, 2018
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. 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?
 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.

Question 2

In a market socialist economy
 a. Resources are allocated by the market
  b. Property is owned by the state or by collectives
  c. Information is centralized
  d. There are no public choices
  e. Both a and b


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kkenney

  • Sr. Member
  • ****
  • Posts: 352
Reply #1 on: Jun 30, 2018
Answer to Question 1

.C

Answer to Question 2

E


clippers!

  • Member
  • Posts: 828
Reply 2 on: Jun 30, 2018
Gracias!

Dnite

  • Member
  • Posts: 297
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

China’s 8% annual increase in oil consumption China’s 8% annual increase in oil consumption
Young adults increase in self-esteem between the ages of 18 and 25, according to this longitudinal s Young adults increase in self-esteem between the ages of 18 and 25, according to this longitudinal s
Which Political Party Dominates? Which Political Party Dominates?
Rinse the soap off completely from fingertips to elbows. Water flows off the forearms near the ... Rinse the soap off completely from fingertips to elbows. Water flows off the forearms near the ...
Modern machinery has helped farmers increase yields Modern machinery has helped farmers increase yields
Marginal Products of Physical and Human Capital Marginal Products of Physical and Human Capital
Video: Major Elements in Biological Molecules: Proteins

For a complete list of videos, visit our video library