This topic contains a solution. Click here to go to the answer

Author Question: Suppose foreign exchange markets anticipate a revaluation for country A. Further assume that policy ... (Read 12 times)

burton19126

  • Hero Member
  • *****
  • Posts: 532
Suppose foreign exchange markets anticipate a revaluation for country A. Further assume that policy makers in country A will continue to fix its nominal exchange rate. In order to peg the currency at its original level, which of the following must occur?
 
  A) Increase the domestic interest rate.
  B) Increase the domestic price level.
  C) Convince trading partners to raise their interest rates.
  D) all of the above
  E) none of the above

Question 2

Based on our understanding of the model presented in chapter 11, which of the following will cause a permanent increase in growth?
 
  A) an increase in education spending
  B) an increase in the saving rate
  C) an increase in capital accumulation
  D) all of the above
  E) none of the above



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

briseldagonzales

  • Sr. Member
  • ****
  • Posts: 303
Answer to Question 1

B

Answer to Question 2

E




burton19126

  • Member
  • Posts: 532
Reply 2 on: Jun 30, 2018
Wow, this really help


marict

  • Member
  • Posts: 304
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

For a complete list of videos, visit our video library