Spending VCU4 on real-world goods and services 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 2 - The United States has the most progressive income tax system among the industrialized countries
a. True
b. False
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 highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and current international transactions become more positive (or less negative).
b. The real risk-free interest rate falls, and current international transactions become more negative (or less positive).
c. The real risk-free interest rate rises, and current international transactions remain the same.
d. The real risk-free interest rate rises, and current international transactions become more negative (or less positive).
e. There is not enough information to determine what happens to these two macroeconomic variables.
Question 4 - Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to rise.
b. M2 money supply to rise.
c. M2 money multiplier to remain the same.
d. M2 money multiplier to fall.
Quick Reply
