A German citizen buys an automobile produced in the United States by a Japanese company. As a result,
a. U.S. net exports increase, U.S. GDP is unaffected, Japanese GNP increases, German net exports decrease, and German GNP and GDP are unaffected.
b. U.S. net exports and GDP increase, Japanese GNP increases, German net exports decrease, German GNP is unaffected, and German GDP decreases.
c. U.S. net exports and GDP increase, Japanese GNP increases, German net exports decrease, and German GNP and GDP are unaffected.
d. U.S. net exports and GDP are unaffected, Japanese GNP increases, and German net exports, GNP, and GDP decrease.
c
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If demand deposits increase, the result is that
a. required reserves must increase b. the reserve ratio must increase c. all banks are "loaned up" d. the number of loans must decrease e. all banks are suffering a loss
In a perfectly competitive industry, assume the short-run average total cost increases as the output of the industry expands. In the long run, the industry supply curve will:
A. have a positive slope. B. have a negative slope. C. be perfectly horizontal. D. be perfectly vertical.
The egalitarian principle refers to
A. "To each according to her productivity." B. "To each exactly the same." C. "To each according to her need." D. "To each according to his ability."
Consider a perfectly competitive firm with MC = 10 + q. If market demand is Q = 100 - P and the current industry output is 80 units, then the firm will produce
a. zero units. b. 10 units. c. 20 units. d. the answer cannot be determined without knowing what the supply curve is.