Which of the following transactions will decrease the U.S. current account deficit?
A. A U.S. corporation builds a new factory in Seoul, South Korea.
B. Dutch tourists visiting Los Angeles.
C. U.S. department stores buy shoes from Italy.
D. American firms invest in Tokyo real estate.
B. Dutch tourists visiting Los Angeles.
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When the Federal Reserve reduces its target rate of inflation, it will set a ________ real interest rate at every inflation rate and the aggregate demand curve will ________.
A. lower; shift to the right B. higher; shift to the left C. lower; shift to the left D. higher; shift to the right
Financial institutions that accept deposits and make loans are called ________ institutions
A) investment B) contractual savings C) depository D) underwriting
The following input-requirements data are for Country A, a capital-abundant country that produces nothing but bread and wine using only capital and labor as inputs. 1 Pound of Bread1 Gallon of WineCapital Input5 units20 unitsLabor Input4 units10 units In the long run, which of the following can most reasonably be inferred after this country engages in free trade?
A. The wage rates will decline but the returns to capital will increase. B. The returns to capital will rise in the wine industry and will fall in the bread industry. C. The returns to capital will decline but the wage rates will increase. D. The wage rates will increase in the wine industry and will decline in the bread industry.
In the United States, business cycles have occurred against a backdrop of a long-run trend of:
A. declining unemployment. B. rising inflation. C. rising real GDP. D. stagnant productivity growth.