Explain what are the factors that shift the AA Schedule?
What will be an ideal response?
Changes in the domestic money supply; changes in the domestic price level; changes in the expected future exchange rates; changes in the foreign interest rate and shifts in the aggregate real money demand.
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"If the currency drain ratio increases, the monetary base decreases." Explain whether the previous statement is correct or incorrect
What will be an ideal response?
A merger between firms that compete in the same market is called a:
a. horizontal merger. b. vertical merger. c. conglomerate merger. d. monopoly.
If you put $250 into an account with a 4 percent interest rate, how many years would you have to wait to have $432.92?
a. 10 b. 14 c. 17 d. 20
Contractionary monetary policy will shift the FE curve to the left.
Answer the following statement true (T) or false (F)