The Scale of Transactions in the International Capital Market Has

question 51

Multiple Choice

The scale of transactions in the international capital market has

• A) grown more quickly than world GDP since the early 1970s.
• B) grown less quickly than world GDP since the early 1970s.
• C) grown about the same rate as the world GDP since the early 1970s.
• D) been fixed by international regulations.
• E) decreased more quickly than world GDP since the early 1970s.

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Definitions:

Short-Run Equilibrium

A state in which market supply and demand balance each other, and as a result, prices become stable temporarily.

Money Supply

At any given time, the total economic assets available in an economy, which consist of cash, coins, and the balances in checking and savings accounts.

Long Run

A period of time sufficient for all inputs in the production process to be adjusted, including both fixed and variable resources.

Short-Run Equilibrium

A state in which market supply equals market demand at a particular price level, but where all factors of production and costs are not fully adjustable.