One of the early founders of the European welfare state
a. Marx
b. Kaiser Wilhelm
c. DeGaule
d. Bismarck
e. Erhardt
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 real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables.
b. Real GDP rises, and reserve-related (central bank) transactions become more positive (or less negative).
c. Real GDP and reserve-related (central bank) transactions remain the same.
d. Real GDP rises, and reserve-related (central bank) transactions remain the same.
e. Real GDP falls, and reserve-related (central bank) transactions become more negative (or less positive).
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