Author Question: Assume the output market adjusts more rapidly than the asset market. A point of disequilibrium that ... (Read 127 times)

a0266361136

  • Hero Member
  • *****
  • Posts: 538
Assume the output market adjusts more rapidly than the asset market. A point of disequilibrium that is below both AA and DD will therefore initially result in
 
  A) an increase in output.
  B) a decrease in output.
  C) a contraction of the money supply.
  D) a depreciation of the home currency.
  E) an appreciation of the home currency.

Question 2

What do you expect would be the effects of 9/11 on the size of the Eurocurrency markets?
 
  What will be an ideal response?



Yixagurpuldink

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

B

Answer to Question 2

Will increase due to fear that foreign deposits in the U.S. will be frozen unless coordinated efforts by all countries.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

For a complete list of videos, visit our video library