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 reserves account and monetary base in the context of the Three-Sector-Model?
a. The reserves account falls and monetary base falls
b. The reserves account rises and monetary base falls.
c. The reserves account and monetary base remain the same.
d. There is not enough information to determine what happens to these two macroeconomic variables.
.B
Economics
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a. Capitalist philanthropy b. Labor c. Spontaneous order d. Monopoly e. Above Subsistence wages
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The GDP is a measure of the market value of all final goods and services produced in the economy in a given time period.
Answer the following statement true (T) or false (F)
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