Purchases of foreign assets by domestic firms or households is called a:
A. capital outflow.
B. capital inflow.
C. trade deficit.
D. trade surplus.
Answer: B
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Select the phrase that correctly completes the following statement. "An increase in input prices caused a decrease in the supply of baseballs. As a result ________."
A) the price of baseballs increased and the quantity demanded of baseballs decreased B) the equilibrium quantity of baseballs increased C) the price of baseballs increased. The higher price caused the supply of baseballs to increase D) the price of baseballs increased and the demand for baseballs decreased
If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then the firm's Lerner Index equals
A) 58/16. B) 16/42. C) 58/42. D) 42/58.
Which of the following is NOT true of opportunity cost?
a. Opportunity costs are subjective because they depend upon how the decision-maker values his or her options. b. Opportunity costs are only the monetary costs of lost options. c. Opportunity costs are the highest-valued alternative sacrificed in order to choose an option. d. Only the decision-maker can determine his or her opportunity costs for any particular action.
Please state whether you agree or disagree with the following statement, and why: "An increase in the price level of a country, relative to another country's price level, will cause its currency to appreciate."
What will be an ideal response?