1. If the US central bank announces it will fix the exchange rate at 150 yen per dollar, the equilibrium has a market exchange rate of 75 yen per dollar. In this case:

An arbitrageur could make a profit by selling 150 yen to the central bank for $1 and then buying the yen in the market place for $2. This will raise the equilibrium exchange rate

An arbitrageur could make a profit by buying 150 yen from the central bank for $1 and then selling the yen in the market place for $2. This will raise the equilibrium exchange rate

An arbitrageur could make a profit by buying 150 yen from the central bank for $1 and then selling the yen in the market place for $2. This will lower the equilibrium exchange rate

An arbitrageur could make a prof...

1. In the Mundell-Fleming model with fixed exchange rates, when taxes are raised:

Income decreases, exchange rate and net exports remain the same

Income increases, exchange rate remains the same and net exports increase

Income increases, exchange rate and net exports remain the same

Income decreases, exchange rate remains the same and net exports decrease

9.Increases in country risk lead to

Appreciating currency and lowering income in the short run, and increasing economic growth in the long run.

Appreciating currency and income in the short run, and increasing economic growth in the long run

Depreciating currency and income in the short run, and lowering economic growth in the long run

Depreciating currency and increasing income in the short run, and lowering economic growth in the long run

[6:49 pm, 11/06/2020] Farah eco help: 10.The possible effects of falling prices:Immersive Reader

(10 Points)

higher real money balances, lower interest rates, higher investment spending, and higher equilibrium income

lower real money balances, lower interest rates, higher investment spending, and higher equilibrium income

lower real money balances, higher interest rates, lower investment spending, and lower equilibrium income

higher real money balances, higher interest rates, lower investment spending, and lower equilibrium income