Author Question: Of all the virtual currency systems, VCS4 is poses the __________ risk to nations in which is it ... (Read 161 times)

Redwolflake15 · **on:** Jun 30, 2018

Of all the virtual currency systems, VCS4 is poses the __________ risk to nations in which is it used because ___________________ ________.
a. Highest; it is becoming more accepted and can be spent in the real world.
b. Highest; when converted into legal tender, it has the potential to increase a nation's M2 money supply.
c. Lowest; when converted into legal tender, it has only a small potential to increase a nation's M2 money supply.
d. Lowest; it does not have the potential to raise a nation's price level or threaten its payment system.

Question 2

Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls and real GDP falls.
b. The quantity of real loanable funds per time period rises and real GDP rises.
c. The quantity of real loanable funds per time period rises and real GDP remains the same.
d. The quantity of real loanable funds per time period and real GDP remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.