Suppose Italy currently lends 1.5 billion euros to other nations and borrows 1 billion euros from other nations. Italy is definitely a
A) net borrower.
B) net lender.
C) creditor nation.
D) debtor nation.
B
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The difference between the buyer's opportunity cost and the seller's valuation defines the zone of agreement in which the agreement will benefit both parties
Indicate whether the statement is true or false
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and nominal value of the domestic currency rises. b. There is not enough information to determine what happens to these two macroeconomic variables. c. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same. d. The real risk-free interest rate falls, and nominal value of the domestic currency falls. e. The real risk-free interest rate rises, and nominal value of the domestic currency falls.
Gross private domestic investment does not include:
A. spending for new houses. B. spending to build up inventories. C. unintentional inventory investment. D. spending on employee salaries.
An 11-year-old child who gets into a sold-out show by buying a $1.00 ticket when the regular price is $5.50 adds $1.00 to the theater owner's
What will be an ideal response?