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

Author Question: In an economy with perfect capital mobility, if domestic interest rates are above world interest ... (Read 177 times)

xclash

  • Hero Member
  • *****
  • Posts: 681
In an economy with perfect capital mobility, if domestic interest rates are above world interest rates then
 
  a. capital outflows will drive domestic interest rates down.
  b. capital inflows will drive domestic interest rates down.
  c. current account deficits will drive domestic interest rates down.
  d. the central bank will have to intervene even if exchange rates are floating.

Question 2

Field (2003) claims that the period from 1929 to 1941 was the strongest period of what in U.S. history?
 
  (a) Technological advancements
  (b) Monetary policy
  (c) Government action
  (d) Internationalizatio n



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kjohnson

  • Sr. Member
  • ****
  • Posts: 330
Answer to Question 1

B

Answer to Question 2

(a)




xclash

  • Member
  • Posts: 681
Reply 2 on: Jun 30, 2018
:D TYSM


hramirez205

  • Member
  • Posts: 345
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

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

For a complete list of videos, visit our video library