An example of a foreign direct investment (FDI) would include
A) a U.S. couple buying land for their dream retirement home in Costa Rica.
B) a U.S. mutual fund manager buying shares of stock in a Brazilian oil company.
C) a U.S. firm expanding its U.S. operations.
D) a Chinese consumer buying an imported Japanese car.
E) a wealthy Mexican buying U.S. Treasury bills.
A
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Which combination of monetary and fiscal policies might policymakers elect to ward off a potential recession?
A) Fed sale of bonds combined with tax rate increases B) Fed sale of bonds combined with tax rate decreases C) Fed purchase of bonds combined with tax rate increases D) Fed purchase of bonds combined with tax rate decreases
A 10 percent decrease in advertising results in a 5 percent sales decrease. The advertising elasticity of demand is ________
A) -2.0 B) -0.5 C) 0.5 D) 2 E) none of the above
Regulations to prevent Usury are meant to
A. limit consumption of depletable resources. B. control rents from increasing. C. cap the cost of borrowing. D. provide a living wage.
Suppose the price of video games falls from $40 to $20 and as a result the quantity demanded of footballs falls from 40,000 to 10,000 per year. The value of the cross-price elasticity of demand is
A. 1.00. B. 0.83. C. 0.56. D. 1.80.