Net capital inflows equal:
A. domestic production.
B. international production.
C. capital inflows minus capital outflows.
D. capital outflows minus capital inflows.
Answer: C
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Firms in Thailand that had borrowed dollars while the baht was pegged to the dollar faced interest payments that were ________ than they had planned because the baht had been pegged ________ the equilibrium exchange rate for the baht
A) higher; below B) lower; below C) lower; above D) higher; above
Refer to Figure 4-2. What area represents the decrease in producer surplus when the market price falls from P2 to P1?
A) B + D B) A + B C) C + E D) A + C + E
Which of the following statements about absolute and comparative advantage is not true? A country may have:
A. a comparative advantage but not an absolute advantage in the production of a good. B. an absolute advantage but not a comparative advantage in the production of a good C. the absolute advantage in the production of all goods. D. neither absolute nor comparative advantage in the production of any goods.
If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:
A. 1. B. 2. C. 4. D. 9.