Real interest rate equals the inflation rate minus the nominal interest rate

Indicate whether the statement is true or false


false

Economics

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Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and reserve-related (central bank) transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium

a. The GDP Price Index remains the same and reserve-related (central bank) transactions become more positive (or less negative). b. The GDP Price Index falls and reserve-related (central bank) transactions remain the same. c. The GDP Price Index and reserve-related (central bank) transactions remain the same. d. The GDP Price Index rises and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.

Economics

Law of Demand

What will be an ideal response?

Economics

During which round of negotiations did the WTO toughen its stance against domestic policies that limit trade?

a. Bretton Woods b. Uruguay c. Doha d. The WTO never toughened its stance against domestic policies.

Economics

Which statement is true?

A. M1 is larger than M3. B. M2 is about five times the size of M1. C. M3 is three times the size of M2. D. None of the statements are true.

Economics