When interest rates in the U.S. decline, we can expect capital:
A. inflows and outflows to decrease.
B. inflows and outflows to increase.
C. inflow to decrease, and outflow to increase.
D. outflow to decrease, and inflow to increase.
C. inflow to decrease, and outflow to increase.
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The value of intermediate goods is excluded from the measurement of GDP in order to:
A. adjust for inflation. B. index economic activity. C. avoid double counting. D. measure GDP in constant prices.
Assume good X is produced in a monopolistically competitive market. In addition, each of the firms in the industry uses essentially the same technology. Competitors distinguish their individual products primarily through persuasive advertising
Assume that one of the firms in the market discovers a new production process that substantially reduces the average costs of production. Analyze the effects of this discovery on long-run equilibrium in the market.
Which of the following is correct?
a. Managed funds typically have a higher return than indexed funds. This tends to refute the efficient market hypothesis. b. Managed funds typically have a higher return than indexed funds. This tends to support the efficient market hypothesis. c. Index funds typically have a higher rate of return than managed funds. This tends to refute the efficient market hypothesis. d. Index funds typically have a higher rate of return than managed funds. This tends to support the efficient market hypothesis.
M1 = 1,000 Small denomination time deposits = 1,500 Savings deposit = 1,800 Money market mutual funds = 300 Large denomination time deposits = 800 If M3 is 5,000, small denomination time deposits are 700, and large denomination time deposits are 900, how much is M2?
What will be an ideal response?