Author Question: In which market should you begin your analysis if the domestic stock market is attracting more ... (Read 34 times)

kaid0807 · **on:** Jun 30, 2018

In which market should you begin your analysis if the domestic stock market is attracting more foreign investors? Which curve shifts initially?
a. Real loanable funds market, with a shift in the supply of real loanable funds
b. Real loanable funds market, with a shift in the demand for real loanable funds
c. Foreign exchange market, with a shift in the supply of domestic currency
d. Foreign exchange market, with a shift in the demand for domestic currency
e. Real goods market, with a shift in aggregate supply

Question 2

The nation, as a whole, is hurt by inflation if it:
a. Is expected.
b. Reduces productivity.
c. Changes consumers' preferences for durable versus non-durable goods.
d. Rises at a rate that is greater than real GDP.
e. All the above are true.