The central bank reduce the discount to rise the nations, Ask an Expert

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The central bank reduce the discount to rise the nation's monetary base. The nation has highly mobile international capital markets and a fixed exchange rate system. Use the three sector model to solve the following problems.

12.1. The real risk-free interest rate will _____ and the quantity of loanable funds per period of time will ______.
A. fall, rise
B. rise, fall
C. fall, fall
D. rise, rise

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9292501

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