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Author Question: Monetary policy is more effective when: a. The demand for real loanable funds has a high ... (Read 41 times)

cmoore54

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on: Jun 30, 2018
Monetary policy is more effective when:
 a. The demand for real loanable funds has a high elasticity.
  b. The demand for real loanable funds has a low elasticity.
  c. The strength of the monetary policy does not depend on the elasticity of demand for real loanable funds. Rather, it depends on the elasticity of demand in the foreign exchange market.
  d. Monetary policy has no influence in the Three-Sector-Model.

Question 2

Purchasing power of money:
 a. Is the value of money measured in terms of how many goods and services it will buy.
  b. Is the value of a currency expressed in a foreign currency.
  c. By definition, falls over any given period of time.
  d. Is the value of money adjusted for price differences among countries.
  e. Correlates positively with the inflation rate.


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TDubDCFL

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

.A

Answer to Question 2

.A


cmoore54

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Reply #2 on: Jun 30, 2018
Correct answers!


TDubDCFL

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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