« previous next »

Author Question: How would a country offset the effects of reduced government spending (assume fixed exchange rates ... (Read 96 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?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Population predictions for 2000–2050, using three different total fertility rates ( Population predictions for 2000–2050, using three different total fertility rates (
The Moon’s Interior and Its Effects on the Moon’s Surface The Moon’s Interior and Its Effects on the Moon’s Surface
Health effects of Caffeine Health effects of Caffeine
Effects of Groundwater Pumping Effects of Groundwater Pumping
The world attempted to deal with Somalia as if it were a real country but painfully learned that Som The world attempted to deal with Somalia as if it were a real country but painfully learned that Som
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 ...
Video: Hip Animation

For a complete list of videos, visit our video library