10. Globalization can result in: a. greater specialization in production b. an i

Question

10. Globalization can result in: a. greater specialization in production b. an increase in real GDP c. greater flows of capital across borders d. greater trade among nations e. All of the above f. None of the above 11. Which of the following factors affect interest rates? a. the expectations of businesses regarding the tate tha nges ionthe disposable income of consumers c. changes in the money supply d. changes in the CPI e. All of the above f. None of the above 12. The relationship between the demand for money and the interest rate is: a. Direct b. Inverse c. Complementary d. Supplementary e. Totally unrelated f. None of the ahove

Explanation / Answer

Q10) option e

Globalisation has made the transfer of knowledge & technology, & resources more easy, thus lead to increasing trade among nations.specialization & hence increases the GDP also.

Q11 option e

If money supply rises then interest rate rises to control resulting inflation.

Option c is right

Changes in CPI imply inflation rate changes, hence interest rate affected

Similarly the sentiment and about stability of Economy, as developed nations genrallge have low interest rates

Q12) option b

As interest rate rises, then opportunity cost of holding money rises, bcoz the same money now carries the more interest income , if put in bank . Thus demand for money falls.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.