What does a positive U.S. capital inflow signify?
a. Nothing
b. That the government is running a budget deficit
c. That more funds were invested in the U.S. by foreigners than the U.S. invested abroad during a given time period
d. That the U.S. is running a trade surplus
e. The U.S. net exports are positive
C
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Suppose the typical household holds $1,000 when the interest rate is 5 percent. When the interest rate rises to 6 percent, the typical household would most likely hold
A) more money because the opportunity cost of holding money is higher. B) less money because the opportunity cost of holding money is lower. C) less money because the opportunity cost of holding money is higher. D) more money because the opportunity cost of holding money is lower.
Paper currency that could be redeemed for a specific quantity of an underlying commodity is called
A) commodity money. B) fiat money. C) representative commodity money. D) Federal Reserve cash.
________ are financial securities that represent partial ownership of a firm
A) Certificates of deposit B) Stocks C) Treasury bills D) Bonds
A key element of real business cycle theory is that
a. labor supply is not responsive to changes in real wages. b. labor supply is highly elastic. c. as the wage increases, workers are richer and work less. d. none of the above.