A futures contract is an agreement to buy a commodity at a specific future date, at a price set today

In the financial crises of the 1990s, countries lost international reserves trying to maintain the parity of their currencies

a. True b. False Indicate whether the statement is true or false

Assume that the central bank increases the reserve requirement. If the nation has low mobility 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 falls. b. The real risk-free interest rate falls, and real GDP rises. c. The real risk-free interest rate rises, and real GDP remains the same. d. The real risk-free interest rate and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.