Borrowing VCU3 from an online company cause the nation's:
a. Monetary base to fall.
b. M2 money supply to rise.
c. M2 money multiplier to fall.
d. Monetary base to remain the same.
Question 2 - Public enterprise is less prevalent in Europe than in the United States
a. True
b. False
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 current international transactions balanceand monetary base in the context of the Three-Sector-Model?
a. The current international transactionsbalance becomes more positive (less negative) and monetary base rises.
b. The current international transactionsbalance becomes more negative (less positive) falls and monetary base falls.
c. The current international transactionsbalance becomes more negative (less positive) and monetary base rises.
d. The current international transactionsbalance and monetary base remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 4 - Borrowing VCU3 from an online company cause the nation's:
a. Monetary base to rise.
b. M2 money supply to rise.
c. M2 money multiplier to remain the same.
d. M2 money supply to fall.
Question 5 - U.S. corporations are not motivated to protect the interests of small shareholders
a. True
b. False
Question 6 - Which of the following is not an advantage of flexible exchange rates?
a. Flexible exchange rates provide businesses with protection against business risks associated with monetary base and the money supply changes.
b. Flexible exchange rates provide businesses with protection against business risks associated with exchange rate changes.
c. Flexible exchange rates absorb economic shocks.
d. Flexible exchange rates allow a nation to pursue an independent monetary policy.
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