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

Author Question: Suppose policy makers are pursuing a policy to fix the exchange rate. In such a system with perfect ... (Read 179 times)

strangeaffliction

  • Hero Member
  • *****
  • Posts: 660
on: Jun 30, 2018
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
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


strangeaffliction

  • Member
  • Posts: 660
Reply 2 on: Jun 30, 2018
Excellent

dreamfighter72

  • Member
  • Posts: 355
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

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?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

The lymphatic system. Lymphatic vessels, major lymph nodes, and lymphatic organs. The direction of l The lymphatic system. Lymphatic vessels, major lymph nodes, and lymphatic organs. The direction of l
The skeletal system. The skeletal system.
Renal System Renal System
The male reproductive system The male reproductive system
Immune System Concept Map Immune System Concept Map
Influence of substrate concentration on the rate of an enzyme-catalyzed reaction. Influence of substrate concentration on the rate of an enzyme-catalyzed reaction.
Video: Ventilation - phases and driving forces

For a complete list of videos, visit our video library