Author Question: In long-run equilibrium after a permanent money-supply increase there follows: A) an increase in ... (Read 73 times)

penguins · **on:** Jun 30, 2018

In long-run equilibrium after a permanent money-supply increase there follows:

A) an increase in exchange rate, E.
B) a decrease in exchange rate, E.
C) an increase in output, Y.
D) a decrease in output, Y.
E) an unchanged exchange rate, E.

Question 2

Should the IMF be abolished? Discuss.

What will be an ideal response?

manuelcastillo · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

A

Answer to Question 2

An open answer. Arguments for abolishing the IMF should mention moral hazard, insistence on high interest rates, hasty structural reforms, etc. Arguments against abolishing will stress more coordination, more credit lines, transparency, etc.