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.
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