This topic contains a solution. Click here to go to the answer

Author Question: Assume that foreign capital flows from a nation increase due to political uncertainly and increased ... (Read 140 times)

clippers!

  • Hero Member
  • *****
  • Posts: 828
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
Answer to Question 1

.C

Answer to Question 2

E




clippers!

  • Member
  • Posts: 828
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


ricroger

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

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.

For a complete list of videos, visit our video library