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

Author Question: Suppose policy makers are pursuing a policy to fix the exchange rate. In such a system with perfect ... (Read 75 times)

strangeaffliction

  • Hero Member
  • *****
  • Posts: 660
Suppose policy makers are pursuing a policy to fix the exchange rate. In such a system with perfect capital mobility, an open market sale of domestic bonds by the domestic central bank will eventually result in
 
  A) a permanent increase in the monetary base.
  B) a permanent reduction in the monetary base.
  C) a gradual reduction in the domestic interest rate.
  D) a change in the composition of the monetary base.

Question 2

A reduction in the saving rate will not affect which of the following variables in the long run?
 
  A) output per worker
  B) the growth rate of output per worker
  C) the amount of capital in the economy
  D) capital per worker
  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

Carissamariew

  • Sr. Member
  • ****
  • Posts: 359
Answer to Question 1

D

Answer to Question 2

B




strangeaffliction

  • Member
  • Posts: 660
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


dantucker

  • Member
  • Posts: 346
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

For a complete list of videos, visit our video library