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Title: The creation of the European Monetary Union in 1999 lowered nominal interest rates in countries like ... Post by: 2goodgabe on Feb 24, 2018 The creation of the European Monetary Union in 1999 lowered nominal interest rates in countries like Italy, because:
a. The creation of a supranational central bank reduced expected inflation. b. The supranational central bank increased the money supply rapidly, thereby causing interest rates to fall. c. Actually, interest rates in Italy exploded after the creation of the European Monetary Union, due to the lack of initial confidence in the European Central Bank. d. All of the above. e. None of the above. Question 2 - 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 quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model? a. The quantity of real loanable funds per time period rises and nominal value of the domestic currency falls. b. The quantity of real loanable funds per time period falls and nominal value of the domestic currency remains the same. c. The quantity of real loanable funds per time period rises and nominal value of the domestic currency remains the same. d. The quantity of real loanable funds per time period rises and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables. Question 3 - Postwar globalization is not our first experience with worldwide globalization. a. True b. False Title: The creation of the European Monetary Union in 1999 lowered nominal interest rates in countries like ... Post by: nsc95 on Feb 24, 2018 Content hidden
Title: The creation of the European Monetary Union in 1999 lowered nominal interest rates in countries like ... Post by: 2goodgabe on Feb 24, 2018 Easily the best answer :lol:
Title: The creation of the European Monetary Union in 1999 lowered nominal interest rates in countries like ... Post by: nsc95 on Feb 24, 2018 If so, mark it solved 8-)
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