Privatization in the Czech republic was
a. Loans for shares
b. The Brezhnev reform
c. Voucher privatization
d. Cash privatization
e. None of the above
Question 2 - The aggregate supply curve shows the relationship between the:
a. The Consumer Price Index and the level of output.
b. Real risk-free interest rate and expected inflation.
c. The nation's average price level (i.e., the implicit price index) and the level of output.
d. Nominal exchange rate and level of output.
e. None of the above.
Question 3 - Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium.
a. The real risk-free interest rate rises and nominal value of the domestic currency remains the same.
b. The real risk-free interest rate falls and nominal value of the domestic currency remains the same.
c. The real risk-free interest rate and nominal value of the domestic currency remain the same.
d. The real risk-free interest rate rises and nominal value of the domestic currency rises.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 4 - The Lewis two sector model
a. Explains rapid growth in Asia
b. Says that excess labor in agriculture can be used as a source of growth
c. transfers a surplus from the traditional to the modern sector
d. All of the above
e. None of the above
Question 5 - All the transition economies suffered a transition recession:
a. True
b. False
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