Homework Answers
19. B) determined by supply and demand factors
Output and employments are depends on the supply and demand factors . Bhoot demand and supply factors determine the real business cycle model factors.
20. D) monetarist model
The monetarist model depicts the role of money as affecting only the price level , which contents that changes in money supply are the most significant determinants of the rate of economic growth.
21. D) net capital outflow increase
The movement of assets from one country to other country is called capital outflow . This will decrease the value of the currency, decrease the cost of exports this is all because low domestic interest rates.
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