Suppose you reserve a hotel room in Madrid for $300 per night
When you check out, you are charged only $285 per night. Assuming that the price of the room in euros had not changed, and that the nominal exchange rate had been 0.8 (euros/$) when the reservation was made, the new nominal exchange rate is ________.
A) 0.84
B) 0.76
C) 0.95
D) 1.05
A
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Most municipal bonds are
A) general obligation bonds. B) revenue bonds. C) callable bonds. D) single maturity bonds.
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds and monetary base in the context of the Three-Sector-Model? a. The quantity of real loanable funds rises and monetary base rises
b. The quantity of real loanable funds rises and monetary base falls. c. The quantity of real loanable funds falls and monetary base falls. d. The quantity of real loanable funds and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.