Corporations can acquire funds for investment projects through

Opportunity cost is defined as

A) the highest valued alternative that must be given up to engage in an activity. B) the benefit of an activity. C) the total value of all alternatives that must be given up to engage in an activity. D) the monetary expense associated with an activity.

Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the net nonreserve international borrowing/lendingand monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium

a. The net nonreserve international borrowing/lending balancebecomes more positive (or less negative) and monetary base rises. b. The net nonreserve international borrowing/lending balancebecomes more negative (or less positive) and monetary base falls. c. The net nonreserve international borrowing/lending balancebecomes more positive (or less negative) and monetary base stays the same. d. The net nonreserve international borrowing/lending balanceand monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.