Why does investment by multinational corporations not necessarily help to close the foreign exchange gap
What will be an ideal response?
Investment funds may be raised locally, and the subsidiary may not export its output.
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The actions of the Fed: a. must be approved by the president and Congress
b. must be approved by the president alone. c. must be approved by Congress alone. d. are not subject to approval by any branch of government. e. are subject to the approval of the electorate.
Suppose the South had won the Civil War, and trade no longer took place between Northern and Southern states. Explain whether the sum of the North and South GDPs would have been higher or lower than with the current United States
Suppose that Brazil has a comparative advantage in coffee and Mexico has a comparative advantage in tomatoes. Which of the following groups would be worse off if these countries specialize and trade?
A. All groups are better off when specialization and trade take place. B. Brazilian coffee producers. C. Mexican tomato producers. D. Mexican coffee producers.
Current concern about Social Security is that
A) the fund is growing too rapidly and would trigger inflation. B) the fund might be depleted before long and might not be there for workers who retire later. C) the government is planning to phase out the program. D) none of the above