Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to rise and monetary base to rise.
b. Demand for real goods and services to remain the same and M2 money supply to remain the same.
c. Demand for real goods and services to remain the same and M2 money multiplier to rise.
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 GDP Price Index and monetary base in the context of the Three-Sector-Model?
a. The GDP Price Index rises and monetary base rises.
b. The GDP Price Index rises and monetary base falls.
c. The GDP Price Index and monetary base fall.
d. The GDP Price Index and monetary base remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 3 - In the U.S. taxes:
a. are higher as a share of GDP than in France
b. rely more on sales taxes than on income taxes
c. have higher shares of social security contribution than in Europe
d. none of the above
Question 4 - Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to rise.
b. M2 money supply to fall.
c. M2 money multiplier to remain the same.
d. M2 money supply to rise.
Question 5 - Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The GDP Price Index rises and nominal value of the domestic currency falls.
b. The GDP Price Index falls and nominal value of the domestic currency remains the same.
c. The GDP Price Index rises and nominal value of the domestic currency remains the same.
d. The GDP Price Index rises and nominal value of the domestic currency rises.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 6 - Ruble control refers to the monitoring of the financial plan by observing fulfillment of the physical plan.
a. True
b. False
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