A U.S. firm buys bonds issued by a technology center in India. This purchase is an example of U.S
a. foreign portfolio investment. By itself it is an increase in U.S. holdings of foreign bonds and increases U.S. net capital outflow.
b. foreign portfolio investment. By itself it is an increase in U.S. holdings of foreign bonds and decreases U.S. net capital outflow.
c. foreign direct investment. By itself it is an increase in U.S. holdings of foreign bonds and increases U.S. net capital outflow.
d. foreign direct investment. By itself it is an increase in U.S. holdings of foreign bonds and decreases U.S. net capital outflow.
a
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The argument that when policy changes, people's behavior changes so that historical relationships between macroeconomic variables will no longer hold is known as
A) the Phillips curve. B) the policy irrelevance hypothesis. C) hysteresis. D) the Lucas critique.
President Woodrow Wilson
(a) fostered the growth of government bureaucracy. (b) quickly returned the U.S. economy to a competitive market place. (c) remained neutral on the issue of whether the federal government should intervene in private market affairs. (d) mandated that Congress operate with a balanced budget.
If the demand for a product increases as the result of a decline in income, it can be concluded that the
a. product is an inferior good. b. demand for the product is inelastic. c. price elasticity of demand for the product equals unity. d. demand for the product is elastic.
Suppose that over the past year, the nominal interest rate was 5 percent, the CPI was 150.3 at the end of the year, and the CPI was 144.2 at the beginning of the year. It follows that
a. the dollar value of savings increased at 5 percent, and the purchasing power of savings increased at 0.8 percent. b. the dollar value of savings increased at 5 percent, and the purchasing power of savings increased at 9.2 percent. c. the dollar value of savings increased at 0.8 percent, and the purchasing power of savings increased at 5 percent. d. the dollar value of savings increased at 9.2 percent, and the purchasing power of savings increased at 5 percent.