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. M2 money supply to rise.
Question 2 - Which of the following policies, in effect, destroyed China's central governmental institutions
a. the great leap
b. the cultural revolution
c. the Deng reform
d. the land reform
e. all of the above
Question 3 - 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 quantity of real loanable funds per time period and current international transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and current international transactions become more positive (or less negative).
b. The quantity of real loanable funds per time period rises, and current international transactions become more negative (or less positive).
c. The quantity of real loanable funds per time period and current international transactions remain the same.
d. The quantity of real loanable funds per time period rises, and current international transactions remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 4 - 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 fall.
d. Monetary base to remain the same.
Question 5 - The M form organization says China's success is due to:
a. central planning
b. state capitalism
c. regional competition
d. the Hukuo system
e. none of the above
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