Legal foundations of the European model are provided by common law
a. True
b. False
Question 2 - Spending VCU4 on real-world goods and services causes the nation's:
a. M2 money supply to remain the same.
b. M2 money supply to rise.
c. M2 money multiplier to rise.
d. M2 money supply to fall.
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 GDP Price Index and reserves account in the context of the Three-Sector-Model?
a. The GDP Price Index rises and reserves account becomes more negative (or less positive).
b. The GDP Price Index falls and reserves account remains the same.
c. The GDP Price Index and reserves account remain the same.
d. The GDP Price Index rises and reserves account remains the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 4 - Factor(s) explaining China's rapid growth
a. foreign trade zones
b. high domestic savings
c. Greater China
d. China's export orientation
e. All of the above
Question 5 - Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to rise.
b. M2 money supply to rise.
c. M2 money multiplier to rise.
d. Monetary base to remain the same.
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