The money supply changes if: a. Oil and other natural resource ...

[sdfghj]

The money supply changes if:
 a. Oil and other natural resource prices rise.
  b. GDP rises.
  c. A nation's preferred asset ratios change.
  d. The domestic currency depreciates.

Question 2

Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. 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 real GDP in the context of the Three-Sector-Model?
 a. The quantity of real loanable funds per time period rises, and real GDP rises.
  b. The quantity of real loanable funds per time period rises, and real GDP remains the same.
  c. The quantity of real loanable funds per time period and real GDP remain the same.
  d. The quantity of real loanable funds per time period rises, and real GDP falls.
  e. The quantity of real loanable funds per time period falls, and real GDP falls.

[coyin]

Answer to Question 1

.C

Answer to Question 2

.A

[sdfghj]

Thanks for the timely response, appreciate it

[tranoy]

Excellent