Assume that the central bank purchases government securities in the open market. If the nation has highly mobile 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 and GDP Price Index remain the same.
b. The quantity of real loanable funds per time period rises, and GDP Price Index falls.
c. The quantity of real loanable funds per time period rises, and GDP Price Index rises.
d. The quantity of real loanable funds per time period falls, and GDP Price Index falls.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.C
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Life expectancy at birth in the United States has more than doubled since 1850
Indicate whether the statement is true or false
People are forced to make choices because of:
a. unlimited wants and unlimited resources. b. limited wants and unlimited resources. c. unlimited wants and limited resources. d. limited wants and limited resources. e. irrational wants and limited resources.
Suppose that Emily opens a restaurant. She receives a loan from a bank for $200,000 . She withdraws $100,000 from her personal savings account. The interest rate on the loan is 6%, and the interest rate on her savings account is 2%. Emily's total opportunity cost of capital is
a. $2,000. b. $4,000. c. $12,000. d. $14,000.
The supply curve of money shows, all other things unchanged, the
A) quantity of money supplied at each price of bonds. B) quantity of money supplied at each bond rate. C) quantity of money supplied at each interest rate. D) amount of money people supply at a specific interest rate.