If people buy more than has been produced,

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.

Which of the following refers to dumping?

A. Restricting the sale of domestic goods within the geographic boundary of the country. B. Selling domestic goods in the international market at much lower prices. C. Selling domestic goods of inferior quality in the international markets at higher prices. D. Selling domestic goods at discounted prices to local consumers and selling the same at much higher prices to foreign consumers.