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mireiajordan mireiajordan
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6 years ago
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 real GDP and reserves account in the context of the Three-Sector-Model?
 a. Real GDP rises and reserves account becomes more negative (or less positive).
 b. Real GDP falls and reserves account remains the same.
 c. Real GDP and reserves account remain the same.
 d. Real GDP rises and reserves account remains the same.
 e. There is not enough information to determine what happens to these two macroeconomic variables.


Question 2 - According to the Gerschenkron model, the impulse to overcome relative backwardness came from:
 a. Emperor Hirohito
  b. The Tokugawa warriors
  c. The Emperor code
  d. Confucius
  e. The realization of relative backwardness
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belegalbelegal
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6 years ago
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mireiajordan Author
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6 years ago
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