Author Question: Changes in which of the following variables will cause the current nominal exchange rate to change? ... (Read 32 times)

Mr.Thesaxman · **on:** Jun 30, 2018

Changes in which of the following variables will cause the current nominal exchange rate to change?

A) the future expected long-run nominal exchange rate, Eet+n
B) future expected domestic nominal interest rates
C) future expected foreign nominal interest rates
D) all of the above

Question 2

Suppose the saving rate is initially greater than the golden rule saving rate. We know with certainty that a reduction in the saving rate will cause

A) a reduction in the rate of growth in the long run.
B) a reduction in output per worker.
C) a reduction in consumption per worker.
D) all of the above
E) none of the above