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 GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and GDP Price Index rises.
b. The quantity of real loanable funds per time period falls, and GDP Price Index falls.
c. The quantity of real loanable funds per time period rises, and GDP Price Index falls.
d. The quantity of real loanable funds per time period falls, and GDP Price Index remains the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 2 - The purchase of VCU2 by Tomas Tiergarten, a private resident, 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 3 - What is wearing a red hat?
a. A communist party registeration
b. Use the name of the state institution to cover the private enterprises
c. It is a collectively owned by villagers
d. It is that the economy of China has trouble providing for all the needs of the people
e. All of the above
Question 4 - 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 highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and reserve-related (central bank) transactions remain the same.
b. The GDP Price Index falls, and reserve-related (central bank) transactions become more negative (or less positive).
c. The GDP Price Index and reserve-related (central bank) transactions remain the same.
d. The GDP Price Index rises, and reserve-related (central bank) transactions become more positive (or less negative).
e. The GDP Price Index rises, and reserve-related (central bank) transactions remain the same.
Question 5 - The purchase of VCU2 by Tomas Tiergarten, a private resident, 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 rise.
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