Answer and Breif explantion

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter6: Managing In The Global Economy
Section: Chapter Questions
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Answer and Breif explantion

According to the Mundell-Fleming model for a small open economy with flexible exchange rates,
if the Central Bank cannot alter domestic interest rates, changes in the money supply could still
influence aggregate income through changes in the exchange rate.
Select one:
O True
O False
Transcribed Image Text:According to the Mundell-Fleming model for a small open economy with flexible exchange rates, if the Central Bank cannot alter domestic interest rates, changes in the money supply could still influence aggregate income through changes in the exchange rate. Select one: O True O False
If the per-worker production function is given by y = k2, the saving ratio is 0.4, and the
depreciation rate is 0.1, then the steady-state ratio of capital to labour is:
O a. 9
b. 16
C. 8
O d. 2
Transcribed Image Text:If the per-worker production function is given by y = k2, the saving ratio is 0.4, and the depreciation rate is 0.1, then the steady-state ratio of capital to labour is: O a. 9 b. 16 C. 8 O d. 2
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