Both foreign direct investment and foreign portfolio investment by U.S. residents increase U.S. net capital outflow
a. True
b. False
Indicate whether the statement is true or false
True
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The ________ the desired reserve ratio, the ________ the ________ in the quantity of money created from an initial increase of $100,000 in the monetary base
A) smaller; larger; decrease B) larger; larger; decrease C) larger; smaller; decrease D) smaller; larger; increase E) larger; larger; increase
Demand is price inelastic if a relatively ________ price increase leads to a relatively ________ in the quantity demanded
A) large; small increase B) small; large decrease C) large; small decrease D) small; large increase
If Option A costs $40 and yields 20 units of output and Option B costs $50 and yields 30 units of output,
A) Option B and Option A are equally economically efficient. B) Option B is economically efficient relative to Option A. C) Option A is economically efficient relative to Option B. D) It is not possible to determine which option is more economically efficient.
Regarding new inventions, which of the following statements is not true?
a. a new invention typically has little competition b. this effective monopoly on the market earns the inventor abundant profit c. that profit gets the attention of other potential inventors, who create competing products d. reduced to zero economic profits, the inventor goes out of business