Which of the following is included in the demand for dollars in the market for foreign-currency exchange in the open-economy macroeconomic model?
a. a company in Canada wants to buy oranges from the U.S
b. a Japanese banks want to buy bonds from the U.S. government
c. a U.S. citizen wants to buy stock a German company is selling
d. None of the above is correct.
a
Economics
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Explain the real-nominal principle
What will be an ideal response?
Economics
In February, 2010 the U.S. M1 money multiplier crashed to 0.786. Each $1 increase in the monetary base resulted in the quantity of money increasing by only $0.79. Where did the remaining $0.21 disappear?
A) Banks held part of the $0.21 as excess reserves. B) Banks loaned out the $0.21. C) Consumers held part of the $0.21 as currency. D) Both A and C are correct.
Economics