In modern China contracts are largely enforced by:
a. plans
b. the rule of law
c. common law
d. Roman law
e. state and party officials
Question 2 - Assume a country experiences heavy capital outflows. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions? Assume the exchange rate is stated as: (Domestic currency/Foreign currency).
a. Start the analysis in the foreign exchange market with demand shifting to the right.
b. Start the analysis in the foreign exchange market with supply shifting to the left.
c. Start the analysis in the foreign exchange market with supply shifting to the right.
d. Start the analysis in the real credit market with demand shifting to the left.
e. Start the analysis in the real credit market with demand shifting to the right.
Question 3 - Virtual currency unit 3 (VCU3) is different from VCU2 because:
a. VCU2 cannot be spent in the real world; VCU3 can be spent in the real world.
b. In terms of convertibility, there is no difference; both VCU2 and VCU3 can be purchased with and sold for legal tender.
c. VCU3 can directly affect real world demand, whereas VCU2 cannot affect real-world demand.
d. In terms of their potential to change a nation's M2 money supply, there is no difference because neither VCU3 nor VCU2 affect M
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