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 139 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
Great answer, keep it coming :)


Liddy

  • Member
  • Posts: 342
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

For a complete list of videos, visit our video library