Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to rise.
b. Demand for real goods and services to rise and M2 money supply to fall.
c. Demand for real goods and services to remain the same and M2 money multiplier to remain the same.
d. Demand for real goods and services to rise and monetary base to remain the same.
Question 2 - 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 net nonreserve international borrowing/lending balance in the context of the Three-Sector-Model?
a. Real GDP rises and net nonreserve international borrowing/lending balance becomes more positive (or less negative).
b. Real GDP rises and net nonreserve international borrowing/lending balance becomes more negative (or less positive).
c. Real GDP falls and net nonreserve international borrowing/lending balance becomes more positive (or less negative).
d. Real GDP and net nonreserve international borrowing/lending balance remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 3 - The European Union crisis was caused by:
a. Too little state spending
b. The fact that all EU members are on the euro
c. industrial planning
d. excessive government spending by weak economies
e. all of the above
Question 4 - Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to remain the same.
b. Demand for real goods and services to remain the rise and M2 money supply to fall.
c. Demand for real goods and services to rise and M2 money multiplier to remain the same.
d. Demand for real goods and services to remain the same and M2 money supply to rise.
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