NORDLANDIA IS A COUNTRY WITH A DEVELOPED ECONOMY MAINTAINING ITS OW...
3.
Nordlandia is a country with a developed economy maintaining its own currency, the Nordlandian crown
(NLC), and whose most important export is domestically produced oil and natural gas. In a recent stress test
of Nordlandia's banking system, several scenarios were considered. Which of the following is most consistent
with being part of a coherent scenario?
a.
An increase in domestic inflation and appreciation of the NLC
b.
A significant increase in crude oil prices and a decrease in the Nordlandian housing price index
c.
A drop in crude oil prices and appreciation of the NLC
d.
A sustained decrease in natural gas prices and a decrease in the Nordlandian stock index