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

Author Question: Assume perfect capital mobility and a fixed exchange rate system. Then, an increase in government ... (Read 126 times)

crobinson2013

  • Hero Member
  • *****
  • Posts: 535
on: Jun 30, 2018
Assume perfect capital mobility and a fixed exchange rate system. Then, an increase in government spending would shift the
 
  a. LM schedule to the left.
  b. BP schedule to the right.
  c. BP schedule to the left.
  d. IS schedule to the right.

Question 2

Today, the Federal Reserve System can contract the money supply by
 
  (a) increasing the discount rate.
  (b) increasing reserve requirements.
  (c) selling U.S. Treasury and federal agency securities.
  (d) engaging in all 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

mceravolo

  • Sr. Member
  • ****
  • Posts: 349
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

(d)


crobinson2013

  • Member
  • Posts: 535
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

FergA

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

The metanephridial filtration system of annelids. The metanephridial filtration system of annelids.
Sample Workout in the Target Heart Rate Range Sample Workout in the Target Heart Rate Range
Control of lipolysis in adipose cells by a cAMP-mediated cascade system Control of lipolysis in adipose cells by a cAMP-mediated cascade system
Function divisions of nervous system Function divisions of nervous system
Respiratory system, Urinary and Nervous systems Respiratory system, Urinary and Nervous systems
Flexible exchange rates are supposed to prevent long-term trade deficits. Flexible exchange rates are supposed to prevent long-term trade deficits.
Video: Resting membrane potential - electrical polarity and maintenance requirements

For a complete list of videos, visit our video library