The Chinese famine occurred as a result of:
a. Deng's reforms
b. Zhou's reforms
c. The Cultural revolution
d. The Great Leap forward
e. The 1949 land reform
Question 2 - Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. 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 and reserve-related (central bank) transactions remain the same.
c. The GDP Price Index falls, and reserve-related (central bank) transactions become more negative (or less positive).
d. There is not enough information to determine what happens to these two macroeconomic variables.
e. The GDP Price Index rises, and reserve-related (central bank) transactions remain the same.
Question 3 - Virtual currency unit 2 (VCU2) is different from VCU1 because:
a. VCU1 cannot be spent in the real world; VCUs can be spent in the real world.
b. In terms of convertibility, there is no difference; both VCU2 and VCU3 can be purchased with and sold for legal tender.
c. VCU2 can directly affect real world demand, whereas VCU1 cannot affect real-world demand.
d. In terms of their potential to change a nation's monetary base, there is no difference because neither VCU1 nor VCU2 affect a nation's monetary base.
Question 4 - Gorbachev's reforms were called
a. loans for shares
b. de-democratization
c. the Liberman reform
d. perestroika
e. none of the above
Question 5 - Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index rises, and current international transactions become more negative (or less positive).
b. There is not enough information to determine what happens to these two macroeconomic variables.
c. The GDP Price Index rises, and current international transactions become more positive (or less negative).
d. The GDP Price Index and current international transactions remain the same.
e. The GDP Price Index falls, and current international transactions become more negative (or less positive).
Quick Reply
