A U.S. corporation builds a restaurant in China. Its expenditures are U.S
a. foreign portfolio investment that increase U.S. net capital outflow.
b. foreign portfolio investment that decrease U.S. net capital outflow.
c. foreign direct investment that increase U.S. net capital outflow.
d. foreign direct investment that decrease U.S. net capital outflow.
c
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Which of the following auction examples has a common value information structure?
A. An auction of a famous painting. B. Three firms bid for an oil lease. C. A college in need of money decides to name a building on campus after the person willing to pay the most for the privilege. D. An auction of a famous painting and a college in need of money decides to name a building on campus after the person willing to pay the most for the privilege.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
A country can gain by importing a good from abroad even if that good can be produced more efficiently at home. Is this statement true?
What will be an ideal response?
Assume the desired reserve ratio is 10 percent, banks loan all excess reserves and the currency drain is zero. If the Fed sells $100 million of U.S. government securities to Boise Bank, the monetary base increases by
A) $1 million. B) $10 million. C) $100 million. D) $1,000 million. E) $90 million.