If Asian economies suffer a serious economic slump, U.S. net exports will
a. increase and AD will shift outward.
b. increase and AD will shift inward.
c. decrease and AD will shift inward.
d. decrease and AD will shift outward.
c
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Suppose that utility over consumption and leisure takes the constant elasticity of substitution form 
. If 
falls between 0 and -1, then the labor supply curve is backward bending.
Answer the following statement true (T) or false (F)
A borrower who takes out a loan usually has better information about the potential returns and risk of the investment projects he plans to undertake than does the lender. This inequality of information is called
A) moral hazard. B) asymmetric information. C) noncollateralized risk. D) adverse selection.
What are the two most important factors influencing investor preferences?
A. The desire for high rates of return and the thrill of uncertainty. B. The desire for high rates of return and dislike of risk and uncertainty. C. An equal balance between stocks and bonds, and high rates of return. D. Stable rates of return and balance between private and public sector financial assets.
In recent years, the industrially advanced nations as a group have provided foreign aid amounting to about what percentage of their aggregate outputs?
A. 0.25 percent. B. 0.7 percent. C. 1 percent. D. 2 percent.