Question 10 1 pts If interest rates in Japan increase relative to international interest rate levels. all else being equal, Japan's net capital: 0 inows will tend to increase, and the pool of funds for domestic investment will tend to decrease. O inflows will tend to increase. and the pool of funds for domestic investment will tend to increase. 0 outflows wilI tend to increase, and the pool of funds for domestic investment will tend to decrease. O outflows will tend to increase, and the pool of funds for domestic investment will tend to increase. Question 11 1 pts All of the following are characteristics of short-term economic fluctuations EXCEPT: O expansions and recessions are felt in only a few sectors of the economy. O expansions and recessions are irregular in length and severity. O unemployment rises during recessions. O durable-goods industries are more sensitive to short-term fluctuations than service and non-durable industries.Potential Real GDP Real GDP 2016 $18.2 trillion $18.2 trillion 2017 18.6 trillion 18.4 trillion The hypothetical information in the table shows what the values for US real GDP will be in 2017 if the Fed does not use monetary policy. Which of the following policies makes sense if the Fed wants to keep real GDP at its potential level in 2017? O The Fed should sell Treasury securities. 0 The Fed should lower the target for the federal funds rate. Q The Fed should raise the required reserve ratio. 0 None of the above. D Question 5 1 pts The quantity theory of money predicts that, in the long run, inflation results from the O velocity of money growing at a faster rate than real GDP. O velocity of money growing at a lower rate than real GDP. O money supply growing at a lower rate than real GDP. O money supply growing at a faster rate than real GDP.D Question 6 1 pts Financial intermediaries are firms that: O extend credit to borrowers using funds from savers. O match buyers and sellers of stocks. O match buyers and sellers of bonds. O conduct open market operations. D Question 7 1 pts Type here to search 28