Jen and Alica are both U.S. citizens. Jen opens a cafe in France. Alicia buys equipment from a company in Canada to use in her factory. Whose action is an example of U.S. foreign direct investment?
a. Jen's and Alica's
b. Jen's but not Alicia's
c. Alicia's but not Jen's
d. Neither Anthony's nor Tom's.
b
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A federal system of governments can limit the problems posed by special interests because _____
a. it provides voters with other governments to compare to their own b. it increases the number of legislatures to oversee the bureaucracies c. it decreases rational ignorance d. b and c
Which one of the following statements is true?
a. Resources flow from the government to firms. b. Taxes flow from foreign economies to the government. c. Goods and services flow from households to foreign economies. d. Resources flow from households to firms. e. Resource payments flow from households to the government.
Cyclical unemployment is a part of the unemployment rate that refers to those workers who are: a. moving between jobs
b. no longer looking for a job because they are discouraged about their prospects. c. jobless due to the seasonal nature of their jobs. d. jobless due to a recession in the economy.
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The real risk-free interest rate falls and the current international transactions balance becomes more negative (or less positive). b. The real risk-free interest rate rises and the current international transactions balance becomes more negative (or less positive). c. The real risk-free interest rate and the current international transactions balance remain the same. d. The real risk-free interest rate rises and the current international transactions balance remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.