Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to rise.
b. Demand for real goods and services to remain the same and M2 money supply to rise.
c. Demand for real goods and services to rise and M2 money multiplier to fall.
d. Demand for real goods and services to rise and monetary base to remain the same.
Question 2 - The market for corporate control
a. was guaranteed by the first amendment.
b. makes sure that bad management keeps their jobs
c. makes hostile takeovers impossible
d. provides a means to replace under performing management.
e. all of the above.
Question 3 - Assume that the central bank purchases government securities in the open market. 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 rises, 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 - Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to remain the same and monetary base to fall.
b. Demand for real goods and services to remain the same and M2 money supply to rise.
c. Demand for real goods and services to rise and M2 money multiplier to remain the same.
d. Demand for real goods and services to remain the same and M2 money supply to fall.
Question 5 - A universal bank
a. has branches in many countries.
b. the same as a U.S. commercial bank.
c. performs both traditional banking and merchant-banking functions.
d. none of the above.
e. all of the above
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