This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: To what extent can monetary policy be used to affect output in a fixed exchange rate regime? ... (Read 57 times)

sheilaspns

  • Hero Member
  • *****
  • Posts: 567
on: Jun 30, 2018
To what extent can monetary policy be used to affect output in a fixed exchange rate regime? Explain.
 
  What will be an ideal response?

Question 2

In the absence of technological progress, an increase in the saving rate will cause which of the following?
 
  A) increase temporarily the growth of output per worker
  B) increase the steady state growth of output per worker
  C) decrease temporarily the growth of output per worker
  D) decrease the steady state growth of output per worker
  E) have an ambiguous effect on the growth of output per worker


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Dominic

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 30, 2018
Answer to Question 1

It cannot. To peg the exchange rate, the central bank must keep the domestic interest rate equal to the exogenous foreign interest rate. The domestic central bank cannot independently change its interest rate.

Answer to Question 2

A


sheilaspns

  • Member
  • Posts: 567
Reply 2 on: Jun 30, 2018
Wow, this really help

tanna.moeller

  • Member
  • Posts: 328
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Primary production is positively correlated with the evapotranspiration rate. Primary production is positively correlated with the evapotranspiration rate.
Variations in the extent of dendritic branching. Variations in the extent of dendritic branching.
The respiratory system and the process of gas exchange. The respiratory system and the process of gas exchange.
All computer systems perform four basic functions: input, processing, storage, and output. All computer systems perform four basic functions: input, processing, storage, and output.
A heat exchange vest that uses ice packs for cooling A heat exchange vest that uses ice packs for cooling
Countercurrent Exchange Countercurrent Exchange
Video: Interview with Person having Obsessive Compulsive Disorder

For a complete list of videos, visit our video library