Author Question: Virtual currency unit 1 (VCU1) is poses a __________ risk to nations in which is it used because ... (Read 60 times)

ss2343 · **on:** Jun 30, 2018

Virtual currency unit 1 (VCU1) is poses a __________ risk to nations in which is it used because ___________________ ________.
a. High; it can be used directly by end users to buy goods and services.
b. High, it weakens central banks' abilities to control their monetary bases.
c. Low; it can be earned and spent only in virtual worlds.
d. Low; purchases and sales of VCU1 change only modestly a nation's monetary base.
e. High; it is capable of causing dramatic changes in a nation's M2 money multiplier.

Question 2

Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to real GDP and the monetary base in the context of the Three-Sector-Model?
a. Real GDP rises and monetary base rises.
b. Real GDP rises and monetary base falls.
c. Real GDP and monetary base fall.
d. Real GDP and monetary base remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.