The European model punishes insider trading less severely than ...

[jon_i]

The European model punishes insider trading less severely than the American model.
 a. True
  b. False

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 low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model?
 a. The real risk-free interest rate falls, and real GDP rises.
  b. The real risk-free interest rate rises, and real GDP remains the same.
  c. The real risk-free interest rate and real GDP remain the same.
  d. The real risk-free interest rate falls, and real GDP falls.
  e. There is not enough information to determine what happens to these two macroeconomic variables.

[momtoalll]

Answer to Question 1

A

Answer to Question 2

.D