Economics

Suppose that a small open economy begins to use credit cards, starting from monetary equilibrium, allowing households to hold more of their wealth in interest bearing assets. Discuss the effect on real and nominal money supply, foreign-exchange reserves given:
A) Fixed exchange rates
B) Flexible exchange rates.

THANKS!

  1. 👍
  2. 👎
  3. 👁
  4. ℹ️
  5. 🚩

Respond to this Question

First Name

Your Response

Similar Questions

  1. Social studies

    1. Which type of credit typically gives debtors the most time to repay money they have borrowed? A.) car loans B.) credit cards C.) mortgages D.) personal loans

  2. Social Studies

    Which of the following would be an excellent credit score? 250 500 750*** 100 Which of the following could have a negative impact on a credit score? Having a car loan and a credit card Paying the full balance on a credit card each

  3. history......Mrs. Sue

    How did glasnost contribute to the break-up of the soviet Union? A. restructuring the economy led to a change in the political structure*** B. by allowing citizens more freedom to travel people could see what they were missing C.

  4. Civics

    Can you check my answers? Which of the following examples illustrates a type of control the government exercises over the banking industry 1: Setting the prices charged for purchasing checks and savings books. 2: Setting the

  1. Math (Probability)

    Suppose that 4 cards are drawn from a well-shuffled deck of 52 cards. What is the probability that all 4 are hearts? There are 13 hearts of 52 cards. So, where do I go from here to solve the equation?

  2. Math

    37% of college students say they use credit cards because of the rewards program. You randomly select 10 college kids and ask each to name the reason he or she uses credit cards. Find the probability that the number of college

  3. Stats

    Directions: Suppose you have a standard deck 52 cards (4 suits: hearts, diamonds, clubs, and spades each suit has 13 cards (1/4 of the deck) and those 13 cards include one ace,and numbers 2 through 10 and 3 face cards: a jack a

  4. ststistics

    24% of college students say they use credit cards because of the rewards program. You randomly select 10 college students and ask each to name the reason he or she uses credit cards. Find the probability that the number of college

  1. Civics

    Why might it be better to save up some money and buy something later than to buy it on credit now? You may get protection for purchases that are lost, damaged, or stolen. Buying anything on credit will damage your credit rating.

  2. math

    Data collected from those who reported their credit card debt showed that the lowest average annual percentage rate on its credit cards was 0.019. Represent this as a percent. The lowest APR on its credit cars was __% ?

  3. History

    Which type of economic system has the highest level of government control? A. traditional economy B. market economy C. command economy D. Which of the following is a feature of a good budget? A. money reserved for saving B. income

  4. economics

    What are the advantages and disadvantages of using a credit card? The good: Don't need to cary cash. Can buy needed goods on credit when you otherwise wouldn't be able to. The bad: Usually you pay high interest until the balance

View more similar questions or ask a new question.