In most years, the foreign financial capital in the United States represented no more than what percentage of the funds used for overall physical investment in the economy?
a. 3% to 5%
b. 6% to 10%
c. 15%
d. 16% to 20%
b. 6% to 10%
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
If a monopolist faces entry by a potential rival, investing to lower its marginal cost
A) is a credible way to deter entry. B) is not a credible threat. C) is credible but will not deter entry. D) will not occur, even when there are no barriers to entry.
If Spain is capable of producing either tapas or soccer balls or some combination of those two products, then Spain should:
A. trade only if it possesses the absolute advantage in the production of both goods. B. remain self-sufficient if it can produce both efficiently. C. produce the good it has an absolute advantage in producing. D. produce the good it has a comparative advantage in producing.
Maximum Feasible Hourly Production Rates of EitherCuckoo Clocks or Movies Using All Available ResourcesProductUnited StatesSwitzerlandCuckoo Clocks42Movies104Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing movies in the United States is ________, and the opportunity cost of producing movies in Switzerland is ________.
A. 2.5 cuckoo clocks; 2 cuckoo clocks B. 2.5 movies; 0.4 cuckoo clocks C. 0.4 cuckoo clocks; 0.5 cuckoo clocks D. 2 movies; 2 cuckoo clocks