Author Question: For a borrower, an increase in the real interest rate A) definitely reduces current consumption ... (Read 38 times)

ghost!

  • Hero Member
  • *****
  • Posts: 560
For a borrower, an increase in the real interest rate
 
  A) definitely reduces current consumption and increases future consumption.
  B) reduces current consumption and has an uncertain effect on future consumption.
  C) has an uncertain effect on current consumption and increases future consumption.
  D) has an uncertain effect on both current and future consumption.

Question 2

In the New Keynesian open economy model
 
  A) the nominal exchange rate is always fixed.
  B) prices are flexible.
  C) net exports depends on the relative price of foreign goods to domestic goods.
  D) the nominal exchange rate is always flexible.



nmyers

  • Sr. Member
  • ****
  • Posts: 336
Answer to Question 1

B

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

For a complete list of videos, visit our video library