Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and real GDP remains the same.
b. The real risk-free interest rate rises, and real GDP falls.
c. The real risk-free interest rate and real GDP remain the same.
d. The real risk-free interest rate falls, and real GDP rises.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.B
Economics
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If C = $500, I = $150, G = $100, NX = $40, and GNP = $800, how much is NFP?
A) -$10 B) -$5 C) $5 D) $10
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If real income per person was $47,210 in the U.S. in 2010, and $55,860 in 2014, what was the annual growth rate over this time period?
a. 4.29 percent per year b. 1.83 percent per year c. 8.45 percent per year d. 1.18 percent per year
Economics