An increase in autonomous investment in a small open economy will cause ________
A) a trade surplus to shrink
B) a trade deficit to increase
C) lower net capital outflows
D) all of the above
E) none of the above
D
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According to this Application, the United States was found to have violated international trade laws by imposing excessive ________ on Chinese ________ of goods such as solar panels
A) quotas; imports B) quotas; exports C) tariffs; imports D) tariffs; exports
Everything else held constant, if a central bank makes an unsterilized ________ of foreign assets, then the domestic money supply will increase and the domestic currency will ________
A) purchase; appreciate B) purchase; depreciate C) sale; appreciate D) sale; depreciate
In which of the following cases are disputes more likely to be settled by negotiations than by court cases?
a. When the parties involved are risk averse b. When time is not an important factor c. When court costs are low d. When parties have asymmetric beliefs about facts
In recent years, wireless cellular telephones have been replacing land-line phone service. This is an example of
a. economies of scale. b. division of labor. c. creative destruction. d. entry barriers into a market.