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 net nonreserve international borrowing/lendingand monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The net nonreserve international borrowing/lending balancebecomes more positive (or less negative) and monetary base rises.
b. The net nonreserve international borrowing/lending balancebecomes more negative (or less positive) and monetary base falls.
c. The net nonreserve international borrowing/lending balancebecomes more positive (or less negative) and monetary base stays the same.
d. The net nonreserve international borrowing/lending balanceand monetary base remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.C
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In the figure above, in which country do the highest-income 30 percent of households have the highest fraction of the nation's income?
A) Country A B) Country B C) Country C D) It is impossible to answer the question without more information.
If Joel buys ten floppy disks, which are worth a total of $30 to him, and he pays $1 a disk, how much consumer surplus does he derive?
a. $24 b. $15 c. $20 d. $10 e. $2 from each floppy disk