One of the strong parallels between the development of virtual currencies and the development of currencies in the United States during the 1800s is:
a. Both began as physical currencies.
b. They owe their size and stature to governments, worldwide, that supported their growth and development.
c. They owe their growth and development to public trust.
d. All of the statements above are true.
Question 2
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile 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 falls, and real GDP stays the same.
c. The real risk-free interest rate rises, and real GDP remains the same.
d. There is not enough information to determine what happens to these two macroeconomic variables.
e. The real risk-free interest rate falls, and real GDP falls.
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