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Author Question: Suppose foreign exchange markets anticipate a revaluation for country A. Further assume that policy ... (Read 76 times)

burton19126

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on: Jun 30, 2018
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


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briseldagonzales

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

B

Answer to Question 2

E


burton19126

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

Perkypinki

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Reply 3 on: Yesterday
Wow, this really help

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