Foreign direct investment is:
A. investment that occurs when a firm runs part of its operation abroad or invests in another company abroad.
B. investment that occurs when a firm runs its operation domestically, and sells its product abroad.
C. when foreign companies buy physical capital from the United States.
D. when foreign companies buy and operate physical capital within the United States.
A. investment that occurs when a firm runs part of its operation abroad or invests in another company abroad.
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The 2009 fiscal stimulus bill represented approximately
A. 5.5 percent of GDP and was designed to close the expansionary gap. B. 5.5 percent of GDP and was designed to close the recessionary gap. C. 7.8 percent of GDP and was designed to close the expansionary gap. D. 7.8 percent of GDP and was designed to close the recessionary gap.
If Brazil buys $100 million of tractors from the U.S., then U.S. net exports will decrease
a. True b. False Indicate whether the statement is true or false
Suppose OPEC is unable to come to an agreement regarding oil production and as a result the price of oil drops. Which of the following would you expect to occur as a result of this favorable supply shock?
a. The short-run Phillips curve will shift to the right and the unemployment rate will increase. b. The short-run Phillips curve will shift to the right and the unemployment rate will decrease. c. The short-run Phillips curve will shift to the left and the unemployment rate will increase. d. The short-run Phillips curve will shift to the left and the unemployment rate will decrease.
If households decrease the amount of bank account withdrawals, the consumption function may shift upward.
Answer the following statement true (T) or false (F)