If a nation is selling more goods and services to foreigners than it is buying from them, then on net it must be buying assets abroad
a. True
b. False
Indicate whether the statement is true or false
True
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Often single-owner proprietorships seem more profitable than they really are. The reason for this is that
A) they receive special tax benefits compared to corporations. B) they use different accounting procedures. C) they often fail to consider the opportunity cost of the labor provided by the owner. D) they are not allowed to deduct depreciation expense.
If for some reason U.S. residents increase their purchases of foreign assets, then all else constant which curve in the market for foreign-currency exchange shifts and which direction does it shift? What happens to the exchange rate?
U.S. corporation Wright Air Conditions borrows funds to build a factory in the U.S. and a factory in Mexico. Borrowing for factories in which location(s) is included in the U.S. demand for loanable funds?
a. only the U.S. b. only Mexico c. Mexico and the U.S. d. neither Mexico nor the U.S.
A shift from LRAS1 to LRAS2 in Figure 17.6 indicates that
A. The price level has increased. B. The capacity of the economy has increased. C. LRAS has decreased. D. Aggregate demand has decreased.