In the socialist controversy
a. Marx demonstrated the superiority of capitalism
b. Marx demonstrated the superiority of socialism
c. Keynes showed that capitalism was unstable
d. Hayek and Mises argued that socialism would be inefficient
e. Kornai talked about soft budgets
Question 2 - If the real, risk-free interest rate in the Euro-Area rises the:
a. Supply curve of real loanable funds in the Euro-area rises.
b. Supply curve of real loanable funds in the Euro-area falls.
c. Demand curve for real loanable funds in the Euro-area rises.
d. None of the above.
Question 3 - What happens to the monetary base if the domestic currency is undervalued (the central bank fixed the exchange rate below equilibrium) and the central bank intervenes to fix the exchange rate at its current level?
a. The change in the monetary base is ambiguous.
b. The monetary base is only affected by interventions of the central bank when the domestic currency is overvalued.
c. The monetary base will rise.
d. The monetary base is never affected by interventions of the central bank.
e. The monetary base will fall.
Question 4 - In a planned socialist economy, the dictator should dislike:
a. Horizontal transactions
b. Monetary policy
c. Ruble control
d. Fiscal policy
e. All of the above
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