Which of the following does not shift the supply of real loanable funds to the right (i.e., increase it)?
a. A rise in real income.
b. Higher consumer indebtedness levels relative to income.
c. The expectation of higher incomes.
d. All of the above increase the supply of real loanable funds.
Question 2 - 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 real GDP 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 real GDP falls.
b. The real risk-free interest rate falls and real GDP rises.
c. The real risk-free interest rate rises and real GDP remains the same.
d. The real risk-free interest rate and real GDP remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 3 - Which of the following does not shift the supply of real loanable funds to the right (i.e., increase it)?
a. A rise in real income.
b. An increase in wealth.
c. Higher consumer indebtedness levels relative to income.
d. All of the above increase the supply of real loanable funds.
Question 4 - 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 GDP Price Index 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 falls and GDP Price Index falls.
b. The real risk-free interest rate rises and GDP Price Index falls.
c. The real risk-free interest rate and GDP Price Index remain the same.
d. The real risk-free interest rate falls and GDP Price Index rises.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 5 - The most successful region of transition
a. Central Europe
b. Russia
c. Central Asia
d. Belarus
e. Afghanistan
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