Author Question: In an economy with perfect capital mobility, if domestic interest rates are above world interest ... (Read 184 times)

xclash · **on:** Jun 30, 2018

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