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 M2 money supply, there is no difference because neither VCU1 nor VCU2 affect M
Question 2 - Chinese private companies get their capital largely from:
a. The Whenzou market
b. Private banks
c. IPOs
d. State banks
e. Government grants
Question 3 - 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 quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables.
b. The GDP Price Index rises, and nominal value of the domestic currency falls.
c. The GDP Price Index rises, and nominal value of the domestic currency rises.
d. The GDP Price Index falls, and nominal value of the domestic currency rises.
e. The GDP Price Index rises, and nominal value of the domestic currency remains the same.
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