The Industrial Revolution began in Germany and spread to Europe and North America.
a. True
b. False
Question 2 - Virtual Currency Unit 3 (VCU3) is poses a __________ risk to nations in which is it used because ___________________________.
a. Low; it conversion back into real world currencies causes no change in M2, the monetary base, or net demand for real goods and services.
b. Low; it cannot be converted back into real world (legal tender) currencies.
c. High; it can be converted and spent on real-world goods and services.
d. High; online companies can create as much as they want, which could overinflate a nation's money supply and excessively increase demand.
Question 3 - Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises and GDP Price Index rises.
b. The quantity of real loanable funds per time period falls and GDP Price Index falls.
c. The quantity of real loanable funds per time period rises and GDP Price Index falls.
d. The quantity of real loanable funds per time period and GDP Price Index remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 4 - By the 18th century, the bulk of world output was produced in:
a. Asia
b. Africa
c. Europe
d. The Asian offshoots
e. none of the above
Question 5 - Virtual Currency Unit 3 (VCU3) poses a __________ risk to nations in which is it used because ___________________________.
a. Low; it can be spent only in virtual worlds.
b. Low; when converted into legal tender, it has no effect on a nation's M2 money supply or monetary base.
c. Low; it does not have the potential to raise a nation's price level or threaten the nation's payment system.
d. All of the above are true.
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