What is unique about Chinese industrial revolution?
a. It is led by foreign workers
b. It is led by international investment
c. It is led by rural people through rural industrialization
d. It is led by reform leaders.
e. none of the above
Question 2
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 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. The GDP Price Index rises, and current international transactions become more positive (or less negative).
c. Real GDP Price Index falls, and current international transactions rises.
d. There is not enough information to determine what happens to these two macroeconomic variables.
e. The GDP Price Index falls, and current international transactions remains the same.
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