Author Question: As the supply of virtual currency unit 4 (VCU4) rises, nations in which it is used can gradually ... (Read 26 times)

Deast7027 · **on:** Jun 30, 2018

As the supply of virtual currency unit 4 (VCU4) rises, nations in which it is used can gradually lose control over their:
a. Monetary bases.
b. M2 money multipliers.
c. M2 money supplies.
d. Demand for real goods and services.

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 net nonreserve international borrowing/lending balance in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises and net nonreserve international borrowing/lending balance becomes more positive (or less negative).
b. The quantity of real loanable funds per time period rises and net nonreserve international borrowing/lending balance becomes more negative (or less positive).
c. The quantity of real loanable funds per time period falls and net nonreserve international borrowing/lending balance becomes more positive (or less negative).
d. The quantity of real loanable funds per time period and net nonreserve international borrowing/lending balance remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.