Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions balance in the context of the Three-Sector-Model?
a. The quantity of real loanable
funds per time period falls and current international transactions balance becomes more negative (or less positive).
b. The quantity of real loanable funds per time period rises and current international transactions balance becomes more negative (or less positive).
c. The quantity of real loanable funds per time period and current international transactions balance remain the same.
d. The quantity of real loanable funds per time period rises and current international transactions balance remains the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.B
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When Ferrari sells stock to the public in its IPO, it will do so through the New York Stock Exchange. People who buy the shares will
A) do so in the indirect finance market. B) own part of the company. C) be promised to be repaid their investment plus interest. D) All of the above are true.
Under the rule of reason, no firm with a large market share could be found guilty of violating the Sherman Antitrust Act
a. True b. False