Which of the following is a common argument against allowing a foreign firm to operate a business in a developing country?
a. The foreign firm may gain control over national resources.
b. Foreign productive expertise may outdistance domestic labor skills.
c. The foreign firm may reduce domestic competition.
d. Technology may be transferred from industrial countries to the developing countries.
e. The foreign firm may reduce dependency on domestic imports.
a
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A decrease in the price level will
a. have no effect on aggregate demand b. decrease aggregate demand c. decrease aggregate expenditure d. decrease the equilibrium level of national income e. increase the equilibrium level of national income
Which of the following is true for the developing countries that moved most rapidly toward economic freedom during 1980-2005 period?
What will be an ideal response?
People will want to buy fewer bonds and the interest rate will rise, as the price level
a) falls by more than 50 percent. b) falls by less than 50 percent. c) remains constant. d) rises.
Arbitrage is the purchase of foreign currency on one market for immediate resale on a foreign market in order to profit from a price discrepancy.
a. true b. false