Assume that the central bank increases the reserve requirement. 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 GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and GDP Price Index rises.
b. The quantity of real loanable funds per time period falls, and GDP Price Index falls.
c. The quantity of real loanable funds per time period rises, and GDP Price Index falls.
d. The quantity of real loanable funds per time period and GDP Price Index remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.B
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Use the following table to answer the question below. Jane's Production Possibilities SchedulePounds of Green BeansPounds of Corn08020604040602080 0Jane's opportunity cost of producing 1 pound of corn is ________ pound(s) of green beans.
A. 2 B. 4 C. 1/2 D. 1
A recession is a period when
a. output growth is negative for two consecutive quarters b. actual output falls below potential output and the rate of unemployment falls below the high- employment benchmark. c. unemployment reaches 10 percent for an extended period of time. d. actual output falls below potential output and the rate of unemployment rises above the high-employment benchmark..
Refer to the accompanying figure. If this economy were currently operating at point D, then in order to make more movies:
A. the first productive resources to switch to making movies should be those with the lowest opportunity cost of making milk. B. the first productive resources to switch to making movies should be those with the highest opportunity cost of making milk. C. no productive resources would need to switch from making milk to movies because each resource should continue to be used according to its comparative advantage. D. no productive resources would need to switch from making milk to movies because point D is already efficient.
On average, since 1900 the population of the United States has grown by roughly ________ percent per year.
A. 3 B. 6 C. 1 D. 9