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 quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending in the context of the
Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).
b. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).
c. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative).
d. The quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending remain the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.A
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If the government has enough knowledge about a market and the damage it causes through pollution, it can force the socially optimal output
A) through an emission fee. B) using a ban on pollution. C) by deregulating to eliminate the monopoly. D) All of the above.
In the above figure, what happens to the firm's optimal level of output if the price it receives for its product increases from P2 to P3?
A) Output stays the same. B) Output decreases. C) Output increases. D) There is not enough information provided to know what happens to output.
Which of the following was NOT a result of the BRAC anti-poverty program in Bangladesh?
a. Improved mental health b. Higher income levels a year after the program ended c. Improved female empowerment d. Large increases in income of over 10 percent
An increase in the misery index would definitely result from
A. A rightward shift of the Phillips curve. B. A leftward shift of the Phillips curve. C. A movement along the Phillips curve toward greater inflation. D. A movement along the Phillips curve toward greater unemployment.