If the real risk-free interest rate rises, the:
a. Demand curve for real loanable funds rises.
b. Demand curve for real loanable funds falls.
c. Supply curve of real loanable funds falls.
d. None of the above.
Question 2 - What happens to the Canadian monetary base if there is an excess supply of 100 million euros in the Canadian dollar:euro foreign exchange market, which the Bank of Canada purchases?
a. The Canadian monetary base falls by 100 million euros worth of Canadian dollars.
b. The Canadian monetary base falls. The amount depends on the size of the money multiplier
c. The Canadian monetary base might fall or rise.
d. The Canadian monetary base rises by 100 million euros worth of Canadian dollars.
e. The Canadian monetary base rises. The amount depends on the size of the money multiplier.
Question 3 - The social contract is an idea from:
a. Marx
b. Ricardo
c. Smith
d. Locke
e. Hayek
Question 4 - If the real risk-free interest rate falls, the:
a. Demand curve for real loanable funds rises.
b. Demand curve for real loanable funds falls.
c. Supply curve of real loanable funds rises.
d. None of the above.
Question 5 - What happens to the Canadian M2 money supply if there is an excess demand of 100 million euros in the Canadian dollar:euro foreign exchange market and the Canadian central bank intervenes to offset the excess? Assume the M2 money multiplier is 3.
a. The Canadian M2 money supply falls by 300 million euros worth of Canadian dollars.
b. The Canadian M2 money supply rises by 300 million euros worth of Canadian dollars.
c. The Canadian M2 money supply might fall or rise.
d. The Canadian M2 money supply rises by 100 million euros worth of Canadian dollars.
e. The Canadian M2 money supply falls by 100 million euros worth of Canadian dollars.
Question 6 - The major source of surplus value is:
a. Capitalist philanthropy
b. Labor
c. Spontaneous order
d. Monopoly
e. Above Subsistence wages
Question 7 - All of these events will cause an increase (shift to the right) in the supply of real loanable funds EXCEPT:
a. An increase in the monetary base.
b. A higher real risk-free interest rate.
c. An increase in the nation's real income.
d. All of the above shift the supply.
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