Countries with
A) strong investment opportunities should invest little at home and channel their savings into more productive investment activity abroad.
B) strong investment opportunities should invest more at home and less abroad.
C) weak investment opportunities should invest more at home.
D) weak investment opportunities should invest little abroad.
E) countries with productive investment should invest exclusively at home.
B
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The free-rider problem is the reason way private markets are unlikely to achieve the efficient level of production of
A) normal goods. B) excludable goods. C) public goods. D) private goods.
Consumption spending is $5 million, planned investment spending is $8 million, unplanned investment spending is $2 million, government purchases are $10 million, and net export spending is $2 million. What is GDP?
A) $15 million B) $23 million C) $25 million D) $27 million
According to rational expectations theory, forecast errors of expectations
A) are more likely to be negative than positive. B) are more likely to be positive than negative. C) tend to be persistently high or low. D) are unpredictable.
The quantity theory of money assumes that the velocity of money:
a. is constant. b. will rise if the money supply rises and fall if the money supply falls. c. will rise if the money supply rises, but it will not change if the money supply falls. d. will fall if the money supply rises, and it will rise if the money supply falls. e. will fall if the money supply rises, but it will not change if the money supply falls.