« previous next »

Author Question: How would a country offset the effects of reduced government spending (assume fixed exchange rates ... (Read 76 times)

Bernana

  • Hero Member
  • *****
  • Posts: 530
on: Jun 30, 2018
How would a country offset the effects of reduced government spending (assume fixed exchange rates and low international capital mobility)?
 a. The central bank would sell securities in the open market.
  b. The central bank would buy securities in the open market.
  c. The central bank would buy domestic currency in the foreign exchange market.
  d. The central bank would raise the discount rate.

Question 2

Cashing out capital gains in Virtual Currency System 3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
 a. Monetary base to fall.
  b. M2 money supply to fall.
  c. M2 money multiplier to remain the same.
  d. M2 money supply to rise.


tmlewis4706

  • Sr. Member
  • ****
  • Posts: 295
Reply #1 on: Jun 30, 2018
Answer to Question 1

.B

Answer to Question 2

.C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

The effects of emphysema. The effects of emphysema.
Effects of a VWFA Lesion Effects of a VWFA Lesion
Antineutrophil cytoplasmic antibody staining patterns. Indirect immunofluorescence of ethanol-fixed ... Antineutrophil cytoplasmic antibody staining patterns. Indirect immunofluorescence of ethanol-fixed ...
The inverse-square law and its effects. Doubling your distance away from a radioactive material ... The inverse-square law and its effects. Doubling your distance away from a radioactive material ...
Reduced Tillage Reduced Tillage
An archaeological sample contains 0.700 g of lead-206 and 2.144 g of uranium-238. Assume that ... An archaeological sample contains 0.700 g of lead-206 and 2.144 g of uranium-238. Assume that ...
Video: Vasectomy

For a complete list of videos, visit our video library