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
You might also like to view...
Showing up to a job interview and not knowing any information about the company is an example of a:
A. positive signal. B. negative signal. C. positive screen. D. negative screen.
The practice of charging different prices on the basis of varying customer preferences is known as:
a. arbitrage. b. discounting. c. price discrimination. d. rationing.
The variation in unemployment caused by the economy moving from expansion to recession or from recession to expansion (i.e., the business cycle) is known as cyclical unemployment.
Select whether the statement is true or false. A. True B. False
Who conducted the study in the 1940s that surveyed entrepreneurs to determine whether they used marginal analysis in choosing their production levels?
a. Milton Friedman b. Fritz Machlup c. Michael Kalecki d. Richard Lester e. William Baumol