Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The quantity of real loanable
funds per time period rises and nominal value of the domestic currency falls.
b. The quantity of real loanable funds per time period falls and nominal value of the domestic currency remains the same.
c. The quantity of real loanable funds per time period rises and nominal value of the domestic currency remains the same.
d. The quantity of real loanable funds per time period rises and nominal value of the domestic currency rises.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.C
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The welfare effects of quotas depend, to some extent, on who has the right to import the quota restricted goods
Indicate whether the statement is true or false
Suppose that U.S. incomes rise relative to British incomes. Then,
a. the dollar will appreciate and the pound will depreciate b. the dollar will depreciate and the pound will appreciate c. the dollar will depreciate and the pound's value will remain constant d. the dollar will appreciate and the pound's value will remain constant e. neither the dollar nor the pound will be affected
In contrast to the United States, countries like Japan and Germany have
a. higher rates of saving and investment. b. higher rates of saving but lower rates of investment. c. lower rates of saving but higher rates of investment. d. lower rates of saving and investment.
Consider a Stackelberg duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi = 2. Based on this information, the Stackelberg leader's reaction function is:
A. QL = 50 ? 0.5QF. B. QL = 49 ? 0.5QF. C. QL = 24.5 ? 0.5QF. D. None of the answers is correct.