Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP falls and the current international transactions balance becomes more negative (or less positive).
b. Real GDP rises and the current international transactions balance becomes more negative (or less positive).
c. Real GDP and the current international transactions balance remain the same.
d. Real GDP rises and the current international transactions balance remains the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.C
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Refer to Scenario 13.9. The equilibrium of this game, if played only once, is that
A) both firms pollute. B) only Lago pollutes. C) only Nessie pollutes. D) neither firm pollutes. E) the firms choose a mixed strategy.
Under a tying contract,
a. the price a buyer must pay for a good is tied to the size of his purchase. b. a customer agrees as a condition of buying a good to purchase one or more additional goods from the same seller. c. a firm agrees to allow members of its competitors' boards of directors to sit on its board. d. a firm agrees to pay an intermediary for having arranged a business deal for the firm.