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 143 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
Wow, this really help

tanna.moeller

  • Member
  • Posts: 328
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

The calories found in one piece of cherry cheesecake could light a 60-watt light bulb for 1.5 hours.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Remedies for insomnia include increased physical exercise and time spent outdoors. Remedies for insomnia include increased physical exercise and time spent outdoors.
A steady needle reading that rises 2 or 3 inches Hg when the engine speed is increased slightly ... A steady needle reading that rises 2 or 3 inches Hg when the engine speed is increased slightly ...
Changing Patterns of Climate increased drought Changing Patterns of Climate increased drought
Created Equal: A Social and Political History of the United States, Brief Edition Created Equal: A Social and Political History of the United States, Brief Edition
Political and Economic Systems Political and Economic Systems
Contributions to political parties , by economic sector 2020 Contributions to political parties , by economic sector 2020
Video: Role of ATP in muscle movement

For a complete list of videos, visit our video library