Which of the following would contribute, directly or indirectly, to a deficit in the capital account of the U.S. balance of payments?
a. A British citizen buys stock in Ford.
b. A British citizen buys a bond from Ford.
c. Interest rates fall in the United States relative to their level in the rest of the world.
d. Australian publisher Rupert Murdoch buys The New York Times.
e. Developing countries become more stable and so borrow less from U.S. banks.
C
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The substitution effect makes workers want to work less when the wage increases.
Answer the following statement true (T) or false (F)
Bans and quotas ___________ in situations where it is difficult or costly for authorities to monitor and punish rule-breakers.
A. often succeed B. sometimes succeed C. rarely succeed D. always succeed
At the start of a cost-push inflation,
What will be an ideal response?
External shocks include all of the following except
A. Wars. B. Population growth. C. Natural disasters. D. Terrorist attacks.