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BROSE0407 BROSE0407
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6 years ago
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 monetary base in the context of the Three-Sector-Model?
 a. The real risk-free interest rate falls and monetary base falls.
 b. The real risk-free interest rate rises and monetary base falls.
 c. The real risk-free interest rate and monetary base remain the same.
 d. There is not enough information to determine what happens to these two macroeconomic variables.


Question 2 - Hayek and Mises argued that the greater efficiency of capitalism is due to
 a. its efficient generation and utilization of information.
  b. its efficient generation of perfect competition.
  c. its moral superiority.
  d. its lack of specialization.
  e. none of the above.
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Klove4Klove4
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6 years ago
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BROSE0407 Author
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6 years ago
Oh my goodness! Your post was awesome!
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#3
6 years ago
Haha thank you for the nice comment
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