Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions balance in the context of the Three-Sector-Model?
a. The quantity of real loanable funds
per time period falls and current international transactions balance becomes more positive (or less negative).
b. The quantity of real loanable funds per time period rises and current international transactions balance becomes more negative (or less positive).
c. The quantity of real loanable funds per time period and current international transactions balance remain the same.
d. The quantity of real loanable funds per time period rises and current international transactions balance remains the same.
e. There is not enough information to determine what happens to these two macroeconomic variables.
.A
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a. Buy the stock only if the company has a sustained competitive advantage b. Don't buy the stock, even if the company has a sustained competitive advantage c. Always buy the stock d. None of the above
By producing at the point where MR = MC, the firm:
a. is guaranteed a profit. b. will earn a profit of zero. c. will lose money. d. profit is maximized. e. output.
When controls over market prices are enacted, the consequences are always clear.
Answer the following statement true (T) or false (F)
An increase in the price of good X causes the demand curve for good Y to shift to the left. We know then that
a. X and Y are complementary goods b. X and Y are substitute goods c. X and Y are inferior goods d. X is a normal good and Y is an inferior good e. X is an inferior good and Y is a normal good