If gold and the dollar are substitutes, a cut in the Japanese discount rate can be expected to

a. appreciate the dollar and decrease the price of gold.
b. depreciate the dollar and increase the price of gold.
c. depreciate the dollar and decrease the price of gold.
d. appreciate the dollar and increase the price of gold.


a

Economics

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Write down a model that will allow you to analyze the BOP and exchange rate in a monetary framework. Then, discuss the consequences of an increase in the foreign inflation rate under fixed, flexible, and managed floating systems

What will be an ideal response?

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According to the real business cycle theory, what is the principal cause of business cycle fluctuations?

What will be an ideal response?

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The market supply in a perfectly competitive market is:

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Economics