Cashing out capital gains in Virtual Currency System 3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. M2 money multiplier to remain the same.
b. M2 money supply to fall.
c. M2 money multiplier to fall.
d. Monetary base to rise.
Question 2 - Feature(s) of the Asian model
a. high rate of capital formation
b. open economy
c. export orientation
d. high domestic saving
e. all of the above
Question 3 - Given fixed exchange rates, which measure is most effective in reducing the unemployment rate?
a. Expansionary monetary policy.
b. Expansionary fiscal policy and expansionary monetary policy are equally effective.
c. Neither expansionary fiscal policy nor expansionary monetary policy is effective.
d. Expansionary fiscal policy.
Question 4 - Cashing out capital gains in Virtual Currency System 3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. Monetary base to fall.
b. M2 money supply to fall.
c. M2 money multiplier to fall.
d. Monetary base to remain the same.
Question 5 - A remarkable feature of the Four Tigers is that economic growth occurred with:
a. no inflation
b. high inflation
c. a relatively equal distribution of income
d. an unequal distribution of income
e. none of the above
Question 6 - What is the first round effect on the components of aggregate demand, if the government increases spending (assume fixed exchange rates and financing through the real credit market)?
a. Aggregate demand increases and net exports decrease.
b. Aggregate demand and net exports do not change
c. Aggregate demand decreases and net exports increases.
d. Aggregate demand and net exports increase.
e. Aggregate demand and net exports decrease.
Question 7 - Cashing out capital gains in Virtual Currency System 3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. Monetary base to rise.
b. M2 money supply to rise.
c. M2 money supply to remain the same.
d. M2 money supply to fall.
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