Investments that are mistakenly made and generate losses
a. will occur when future revenues are known with certainty.
b. indicate that the capital market is incapable of generating wealth.
c. are normal costs of developing new projects and technologies in a world of uncertainty.
d. will not occur when capital markets are operating efficiently.
C
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Refer to the scenario above. Earthland's financial account would report a balance of ________ for the year
A) $4 billion B) -$10 billion C) -$6 billion D) $14 billion
Which of the following is true regarding the foreign holdings of U.S. dollars?
What will be an ideal response?
Your favorite holiday is Halloween and each year you decorate your yard with pumpkins, skeletons, and tombstones, and you install a noise machine which blasts haunting sounds 24 hours a day. It is such a spectacle that hundreds of people drive by your house each day to gawk at the display. The noise and traffic disturb your neighbors who sue you, and you are required to take down your display permanently. This is an example of
A. the free-rider problem. B. a liability rule. C. the Coase theorem. D. an injunction.
Refer to the table. A decrease in the interest rate not caused by a change in the price level would:
Answer the question on the basis of the following table for a particular country in which C is
consumption expenditures, I g is gross investment expenditures, G is government expenditures,
X is exports, and M is imports. All figures are in billions of dollars. Each question is
independent of other question using the same table, unless otherwise stated.
A. increase the values in column (3) and increase aggregate demand.
B. decrease the values in column (3) and increase aggregate demand.
C. increase the values in column (2) and decrease aggregate demand.
D. decrease the values in column (2) and decrease aggregate demand.