Last year a country had $700 billion of saving and $900 of investment. What was its net capital outflow? How is it possible for a country to have investment that exceeds saving?
Net capital outflow equals saving - domestic investment equals $700 billion -$900 billion = -$200 billion. A country can have investment that exceeds saving if it borrows from abroad, that is if on net foreigners purchase domestic assets.
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A. $7.8 billion B. $1.1 million C. $2.2 trillion D. $4.4 trillion
A monopsonist hires the amount of labor where the marginal revenue product of labor equals the:
a. price of the monopsonist's product. b. wage rate. c. marginal factor cost of labor. d. marginal product of labor.
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a. directly. b. in the same proportion. c. by a greater amount. d. indirectly.
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a. It will increase demand for U.S. dollars. b. It will decrease demand for U.S. dollars. c. It will increase supply of U.S. dollars. d. It will decrease supply of U.S. dollars.