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Title: What happens to the Canadian M2 money supply if there is an excess demand of 100 million euros in ... Post by: MalorieB on Feb 24, 2018 What happens to the Canadian M2 money supply if there is an excess demand of 100 million euros in the foreign exchange market and the central bank intervenes to offset the excess? Assume the M2 money multiplier is 3.
a. The Canadian M2 money supply falls by 300 million euros worth of Canadian dollars. b. The Canadian M2 money supply rises by 300 million euros worth of Canadian dollars. c. The Canadian M2 money supply might fall or rise. d. The Canadian M2 money supply rises by 100 million euros worth of Canadian dollars. e. The Canadian M2 money supply falls by 100 million euros worth of Canadian dollars. Question 2 - One reason to expect higher growth under planned socialism a. material balance planning b. the dictator's use of coercion c. growth based pricing policy d. the dictator worries about consumption e. the dictator can set a high investment rate Question 3 - An increase in the real risk-free interest rate causes the: a. Preferred asset ratio for currency in circulation (C/D) to fall, which decreases the quantity of real loanable funds supplied. b. Preferred asset ratio for customary reserves (U/D) to fall, which increases the quantity of real loanable funds supplied. c. Preferred asset ratio for near money (N/D) to fall, which decreases the quantity of real loanable funds supplied. e. None of the above. Question 4 - Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model? a. The real risk-free interest rate rises and GDP Price Index rises. b. The real risk-free interest rate falls and GDP Price Index falls. c. The real risk-free interest rate rises and GDP Price Index falls. d. The real risk-free interest rate and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables. Question 5 - In a market socialist economy a. Resources are allocated by the market b. Property is owned by the state or by collectives c. Information is centralized d. There are no public choices e. Both a and b Title: What happens to the Canadian M2 money supply if there is an excess demand of 100 million euros in ... Post by: Za_bby97 on Feb 24, 2018 Content hidden
Title: What happens to the Canadian M2 money supply if there is an excess demand of 100 million euros in ... Post by: MalorieB on Feb 24, 2018 :D that's the expression my face made when I got the notification email
Title: What happens to the Canadian M2 money supply if there is an excess demand of 100 million euros in ... Post by: Za_bby97 on Feb 24, 2018 glad I put that smile on your face :-]
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