« previous next »

Author Question: A number of situations can arise that will cause individuals to believe that policy makers might ... (Read 19 times)

aabwk4

  • Hero Member
  • *****
  • Posts: 593
on: Jun 30, 2018
A number of situations can arise that will cause individuals to believe that policy makers might change the pegged value of a fixed exchange rate. Suppose financial market participants expect a revaluation in the future. The interest parity condition will be maintained if which of the following policy actions are taken in the current period?
 
  A) a reduction in the pegged value of the domestic currency
  B) an increase in i
  C) a reduction in i
  D) an increase in government spending

Question 2

In the following production function, Y = f(K, NA), suppose A increases by 20. This 20 increase in A implies that
 
  A) the same output can be produced with 20 less labor.
  B) the effective quantity of labor has increased by 20.
  C) output will increase by less than 20.
  D) all of the above
  E) both A and C.


scrocafella

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

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.

Differences in the number and location of flagella. Differences in the number and location of flagella.
The relationship between number of acres a Kipsigis man owns and the number of offspring he has duri The relationship between number of acres a Kipsigis man owns and the number of offspring he has duri
“Career choice” for many women means leaving their paid jobs for a number of years when they ... “Career choice” for many women means leaving their paid jobs for a number of years when they ...
A ring link network reduces the number of wires it takes to interconnect all of the modules. A ring link network reduces the number of wires it takes to interconnect all of the modules.
Number Number
Drawings depicting mitosis in an animal cell with a diploid number of 4 Drawings depicting mitosis in an animal cell with a diploid number of 4
Video: Phlebotomy

For a complete list of videos, visit our video library