Which of the following conclusions is not supported by the ...

[Wadzanai]

Which of the following conclusions is not supported by the Three-Sector-Model?
 a. A decrease in borrowing causes the real risk-free interest rate to fall and equilibrium quantity of real loanable funds to fall.
  b. An increase in the supply of a nation's real loanable funds reduces the real risk-free interest rate and increases the equilibrium quantity of real loanable funds.
  c. An increase in a nation's demand for goods and services within the intermediate range results in an increase in the real GDP and a higher GDP Price Index.
  d. An increase in the value of a nation's currency encourages domestic exports and discourages imports.
  e. All of the above are supported by the Three-Sector Model.

Question 2

Currencies that are not backed by precious metals of equal value are called:
 a. Legal tender.
  b. Trouble  with a capital T.
  c. Near money.
  d. Repurchase agreements.
  e. Fiat money.

[macagnavarro]

Answer to Question 1

.D

Answer to Question 2

.E

[Wadzanai]

Excellent

[bulacsom]

Gracias!