All members of the Federal Board of Governors are appointed by the president and confirmed by the Senate

Samantha has been working for a law firm and earning an annual salary of $90,000 . She decides to open her own practice. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Samantha will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which

she was earning annual interest of $1,000 . Assuming that there are no additional expenses, Samantha's annual explicit costs will equal a. $55,200 b. $221,400 c. $91,000 d. $146,200 e. $145,200

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 risk-free interest rate and current international transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium

a. The real risk-free interest rate falls and the current international transactions balance becomes more negative (or less positive). b. The real risk-free interest rate rises and the current international transactions balance becomes more negative (or less positive). c. The real risk-free interest rate and the current international transactions balance remain the same. d. The real risk-free interest rate 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.