A capital outflow occurs when:
A. money saved in another country finances domestic investment.
B. there is a positive difference between capital inflows and capital outflows of a country.
C. there is a negative difference between capital inflows and capital outflows for a country.
D. money saved domestically is invested in another country.
Answer: D
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Which of the following changes aggregate supply and shifts the aggregate supply curve?
i. change in the price level ii. change in potential GDP iii. change in the money wage rate A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
What determines the price and the quantity produced of most goods?
a. the consumer's perception of necessity b. the interaction of supply and demand c. the quality of the goods that are produced d. the availability of substitutes for the goods
If demand is perfectly inelastic, the burden of a tax on suppliers is borne:
A. entirely by the consumers. B. mostly by the suppliers and partly by the consumers if the demand curve is inelastic. C. entirely by the suppliers. D. partly by the suppliers and mostly by the consumers if the demand curve is elastic.
The Keynesian explanation of the Great Depression focuses on
a. large rises in government spending. b. large increases in taxes c. large increases in planned investment. d. an increase in expectations.