Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the net nonreserve international borrowing/lendingand monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The net nonreserve international borrowing/lending balancebecomes more positive (or less negative) and monetary base rises.
b. The net nonreserve international borrowing/lending balancebecomes more negative (or less positive) and monetary base falls.
c. The net nonreserve international borrowing/lending balancebecomes more positive (or less negative) and monetary base stays the same.
d. The net nonreserve international borrowing/lending balanceand monetary base remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.C
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The shape of the long-run industry supply curve in a perfectly competitive industry is largely determined by: a. the shape of the short-run industry supply curve. b. the price of inputs as the industry expands
c. the price elasticity of market demand. d. the shape of the average fixed cost curve.
The CPI differs from the GDP deflator in that
a. the CPI is a price index, while the GDP deflator is an inflation index. b. substitution bias is not a problem with the CPI, but it is a problem with the GDP deflator. c. increases in the prices of foreign produced goods that are sold to U.S. consumers show up in the CPI but not in the GDP deflator. d. increases in the prices of domestically produced goods that are sold to the U.S. government show up in the CPI but not in the GDP deflator.
Most spells of unemployment are short, and most unemployment observed at any given time is long term. How can this be?
Which of the following are examples of perfectly competitive markets?
a. market for wheat b. market for oil c. market for stocks d. all of the above are examples of perfectly competitive markets