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(Solved): Refer to the figure above. Which of the following statements is true? The equilibrium nominal inter ...
Refer to the figure above. Which of the following statements is true? The equilibrium nominal interest rate is 6%. The inflation rate is necessarily 0%, since the nominal and real interest rates are identical in equilibrium. If the the nominal interest rate is 10% and the inflation rate is 4%, the market for loanable funds will be in equilibrium. When the domestic real interest rate is 6%, the current account, will be balanced.
Refer to the figure below, which shows the loanable funds diagram for a closed economy. Suppose the government runs a budget surplus. If the economy starts off at point 0 , where would it end up after such a policy? nothing, the economy would stay at point 0 . to move the economy to point 1. to move the economy to point 2 . to move the economy to point 4 .
Refer to the figure. Suppose the government decides to lower taxes keeping government spending the same. If the economy starts at point 0 , what will be the effect of such a policy? the economy would move to point 0. to move the economy to point 1 . to move the economy to point 2 . to move the economy to point 4.
Refer to the figure above. If the economy starts at point 0 , how would you illustrate the effect of a positive technological shock that increases returns to investment in high-tech industries, by moving to point: