Friday
July 25, 2014

Homework Help: Economics

Posted by Bo on Saturday, July 19, 2008 at 11:51am.

I need help on some T/F questions.

1. A decrease in the foreign interest rate results in a shift to the left by the IS curve.

2. Home's trade balance surplus must increase as a result of a decrease in Home's interest rate.

3. Since investment I is a function of nominal interest rate i, investor cares only about the nominal
interest rate, not the real interest rate.

4. An increase in real money demand results in a shift to the right left by the LM curve.

5. It is impossible to have autonomous monetary policy and fixed EX regime simultaneously.

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