Author Question: Feature(s) of the market for corporate control: a. hostile takeovers b. highly rated bond ... (Read 24 times)

schs14 · **on:** Jun 30, 2018

Feature(s) of the market for corporate control:
a. hostile takeovers
b. highly rated bond financing
c. managerial capitalism
d. related party transactions
e. all of the above

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 net nonreserve international borrowing/investing balanceand monetary base in the context of the Three-Sector-Model?
a. The net nonreserve international borrowing/investing balance becomes more positive (less negative) and monetary base rises.
b. The net nonreserve international borrowing/investing balance becomes more negative (less positive) and monetary base falls.
c. The net nonreserve international borrowing/investing balance becomes more negative (less positive) and monetary base falls.
d. The net nonreserve international borrowing/investing balance and monetary base remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.