Which of the following is a characteristic of an LDC?
a. Capital flight. b. Vicious circle of poverty.
c. Lack of entrepreneurs. d. All of these.
d
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A bank with excess reserves
A) cannot make new loans. B) must make new loans. C) may choose to make new loans equal to the amount of excess reserves. D) can lend an amount equal to the amount of excess reserves multiplied by the inverse of the required reserve ratio.
You are the CEO of a U.S. firm considering building a factory in Chile. If the dollar appreciates relative to the Chilean peso, then other things the same
a. it takes fewer dollars to build the factory. By itself building the factory increases U.S. net capital outflow. b. it takes fewer dollars to build the factory. By itself building the factory decreases U.S. net capital outflow. c. it takes more dollars to build the factory. By itself building the factory increases U.S. net capital outflow. d. it takes more dollars to build the factory. By itself building the factory decreases U.S. net capital outflow.
Which of the following firms is most likely to shut down?
a. TicToc, Inc. has a total revenue of $500,000 and variable costs of $450,000 b. LWT, Inc. has a total revenue of $3 million and variable costs of $3.2 million. c. Sparkle, Inc. has a total revenue of $4 million and variable costs of $3.7 million. d. Motif, Inc has a total revenue of $6 million and variable costs of $6 million.
If real GDP has increased by 3 percent and nominal GDP has increased by 5 percent, then:
A. net factor income is 2 percent. B. inflation is 2 percent. C. depreciation is 2 percent. D. net exports are 2 percent.