When Pam from Pennsylvania buys stock in Ford Motor Co., she is contributing to:
A. domestic portfolio investment in the U.S.
B. capital inflow for the U.S.
C. foreign direct investment for the U.S.
D. capital outflow for the U.S.
Answer: A
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When the central bank ________ the money supply, the LM curve shifts to the right, interest rates ________, and equilibrium aggregate output ________, everything else held constant
A) increases; fall; increases B) increases; rise; decreases C) decreases; rise; decreases D) decreases; fall; increases
Which would increase the quantity of investment demanded?
a. A decline in business optimism b. An increase in business taxes c. A decrease in the real interest rate d. An increase in excess productive capacity c. A decrease in the real interest rate
Which of the following types of unemployment is likely to exist in an economy that is at its potential output level?
What will be an ideal response?
What shape does a production possibilities frontier take if it displays increasing opportunity costs? What shape does a production possibilities frontier take if it displays constant opportunity costs? Which shape is most common in production
situations?