Biology Forums - Study Force

Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
 a. The GDP Price Index rises, and nominal value of the domestic currency falls.
  b. The GDP Price Index falls, and nominal value of the domestic currency rises.
  c. The GDP Price Index rises, and nominal value of the domestic currency remains the same.
  d. The GDP Price Index falls, and nominal value of the domestic currency falls.
  e. There is not enough information to determine what happens to these two macroeconomic variables.

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Question 2 - If Sally Smith creates VCU1 by playing an online game, the effect is to cause the nation's:
 a. Monetary base to rise.
  b. M2 money supply to rise.
  c. M2 money multiplier to rise.
  d. Monetary base to remain the same.

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Question 3 - Which of the four countries has an opt-out and chose not the adopt euro yet:
 a. Germany
  b. Denmark
  c. France
  d. Austria

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Question 4 - Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactionsin the context of the Three-Sector-Model?
 a. The GDP Price Index rises, and current international transactionsbecomes more negative (or less positive).
  b. The GDP Price Index and current international transactionsremain the same.
  c. The GDP Price Index falls, and current international transactionsremains the same.
  d. The GDP Price Index falls, and current international transactionsrises.
  e. There is not enough information to determine what happens to these two macroeconomic variables.

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Question 5 - Spending VCU4 on real-world goods and services causes the nation's:
 a. Monetary base to fall.
  b. M2 money supply to fall.
  c. M2 money multiplier to remain the same.
  d. M2 money supply to rise.

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Question 6 - Which country has the highest unemployment rate?
 a. Spain
  b. Ireland
  c. Sweden
  d. France
  e. All have low unemployment

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