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Author Question: The money supply changes if: a. Oil and other natural resource prices rise. b. GDP rises. c. A ... (Read 21 times)

sdfghj

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on: Jun 30, 2018
The money supply changes if:
 a. Oil and other natural resource prices rise.
  b. GDP rises.
  c. A nation's preferred asset ratios change.
  d. The domestic currency depreciates.

Question 2

Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model?
 a. The quantity of real loanable funds per time period rises, and real GDP rises.
  b. The quantity of real loanable funds per time period rises, and real GDP remains the same.
  c. The quantity of real loanable funds per time period and real GDP remain the same.
  d. The quantity of real loanable funds per time period rises, and real GDP falls.
  e. The quantity of real loanable funds per time period falls, and real GDP falls.


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coyin

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Reply #1 on: Jun 30, 2018
Answer to Question 1

.C

Answer to Question 2

.A


sdfghj

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  • Posts: 552
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

kjohnson

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Reply 3 on: Yesterday
Wow, this really help

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