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Author Question: If assets are imperfect substitutes, then an increase in the amount of domestic currency bonds held ... (Read 81 times)

tiffannnnyyyyyy

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on: Jun 30, 2018
If assets are imperfect substitutes, then an increase in the amount of domestic currency bonds held by the public will ________ the risk premium and ________ the amount of domestic currency bonds held by the central bank.
 
  A) increase; leave unchanged
  B) increase; decrease
  C) increase; increase
  D) decrease; decrease
  E) leave unchanged; decrease

Question 2

Deadweight costs of tariffs equal the sum of net changes in consumer and producer surplus brought about by the tariff.
 
  Indicate whether the statement is true or false


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kxciann

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

A

Answer to Question 2

FALSE
Explanation: Changes in government revenue are also added to the calculation.


tiffannnnyyyyyy

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

scottmt

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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