Question
Please answer the following questions as soon as Possible Choose the Accurate questions answers Q26. In a large open economy 1. the domestic equilibrium real
Please answer the following questions as soon as Possible
Choose the Accurate questions answers
Q26. In a large open economy 1. the domestic equilibrium real interest rate is determined independently of foreign borrowing and lending 2. an increase in domestic saving would lower the world real interest rate 3. an increase in domestic investment would lower the world real interest rate 4. domestic saving and investment decisions have no impact on the world real interest rate
Q27. If the Fed purchases $1 million in securities from the non-bank public, the monetary base will rise by $1 million 1. if the public deposits the proceeds with the Treasury in a monetary base account 2. if the public holds the proceeds as currency 3. whether the public holds the proceeds as currency or deposits them as check-able deposits 4. if the public deposits the proceeds as check-able deposits
Q28. Tie purchasing power or money 1. is constant 2. is set by the Fed in January of each year 3. rises when prices fall 4. rises when prices rise
Q29. Financial instruments with high information costs 1. will have lower yields than U.S. Treasury securities 2. will have lower prices than similar instruments with low information costs
3. will usually be more liquid than similar instruments with low information costs 4. may not be offered for sale in some states
Q30. Savers generally compare the 1. real after-tax rates of return on assets 2. nominal after-tax rates of return on assets 3. real rates of return on assets 4. nominal rates of return on assets
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