A British grocery chain uses previously obtained U.S. dollars to purchase oranges from the United States. This transaction
a. increases British net capital outflow, and increases U.S. net exports.
b. increases British net capital outflow, and decreases U.S. net exports.
c. decreases British net capital outflow, and increases U.S. net exports.
d. decreases British net capital outflow, and decreases U.S. net exports.
c
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The Rawlsian view of equity would lead to:
A) equal allocations of goods across all persons. B) maximizing the utility of the least-well-off person. C) maximizing the total utility of all society members. D) none of the above
Economic rent is
a. the same thing as economic profit b. the difference between accounting profit and economic profit c. the amount a firm pays to lease its factory or machinery d. any earnings in excess of the minimum needed for a good or service to be produced e. any earnings in excess of the maximum necessary for a good or service to be produced
If the real, risk-free interest rate in the Euro-Area rises the:
a. Supply curve of real loanable funds in the Euro-area rises. b. Supply curve of real loanable funds in the Euro-area falls. c. Demand curve for real loanable funds in the Euro-area rises. d. None of the above.
The theory of rational expectations concludes that:
A. the public's expectations can influence the outcome of monetary policy but not of fiscal policy. B. the public's expectations can influence the outcome of fiscal policy but not of monetary policy. C. the public's expectations as to the effects of economic policies tends to reinforce the effectiveness of those policies. D. by reacting in its self-interest to the expected effects of stabilization policy, the public tends to negate the impact of those policies.