The high cost of labor in the European labor market is partially caused by:
a. Substantial labor market regulation
b. high productivity
c. restrictions on hiring
d. a hire and fire policy
e. none of the above
Question 2 - Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative).
b. The real risk-free interest rate falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).
c. The real risk-free interest rate rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).
d. The real risk-free interest rate falls, and net nonreserve-related international borrowing/lending remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 3 - The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to fall.
b. M2 money supply to fall.
c. M2 money multiplier to remain the same.
d. M2 money supply to rise.
Question 4 - The Japanese economy began its development after the:
a. establishment of a monarchy
b. the Tokogawa Dynasty
c. The Second World War
d. The Tan dynasty
e. the Meiji Restoration
Question 5 - Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and nominal value of the domestic currency falls.
b. The real risk-free interest rate falls, and nominal value of the domestic currency falls.
c. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same.
d. The real risk-free interest rate falls, 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 - The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to remain the same.
b. M2 money supply to fall.
c. M2 money multiplier to fall.
d. Monetary base to rise.
Question 7 - The European model punishes insider trading less severely than the American model.
a. True
b. False
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