Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative).
b. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).
c. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative).
d. The quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.A
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A. $1,200 million B. $120 million C. $300 million D. $900 million
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All of the following can file antitrust charges under the Sherman Act except:
A. the U.S. Justice Department. B. state attorneys general. C. injured private parties. D. the Federal Energy Regulatory Commission.
Refer to Scenario 3.2 below to answer the question(s) that follow.SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.Refer to Scenario 3.2. The floods that destroyed part of the lettuce crop would have caused
A. an increase in the quantity of tomatoes demanded. B. a decrease in the demand for tomatoes. C. an increase in the demand for tomatoes. D. a decrease in the quantity of tomatoes demanded.