The Golden Parachute is an instrument that aligns shareholder ...

[sabina]

The Golden Parachute is an instrument that aligns shareholder interests with that of management.
 a. True
  b. False

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 quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
 a. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency falls.
  b. There is not enough information to determine what happens to these two macroeconomic variables.
  c. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency remains the same.
  d. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency falls.
  e. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency rises.

[ApricotDream]

Answer to Question 1

A

Answer to Question 2

.A

[sabina]

YES! Correct, THANKS for helping me on my review

[coreycathey]

TYSM