A foreign bank receives a deposit of $10,000 from a U.S. citizen. As a result, there is a net capital outflow from the U.S., if ________
A) the bank buys a U.S.-made computer
B) the bank buys a bond issued by a U.S. company
C) the bank keeps the $10,000 in a vault
D) all of the above
E) none of the above
A
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From 1960 to 1980, federal government spending on national defense _____
a. declined from about half to less than one quarter of all expenditures b. declined from one-third to less than one quarter of all expenditures c. increased from about half to nearly 60 percent of all expenditures d. increased from about one quarter to nearly one-half of all expenditures
If the government overcorrected in a situation of external costs a. More than the efficient amount of the good would end up being produced. b. Less than the efficient amount of the good would end up being produced. c. It would result in a welfare cost in that market
d. Both b and c are would result.
When a negative externality exists, the marginal social cost curve
a. is the same as the market supply curve b. is the same as the market demand curve c. lies above the market demand curve d. lies below the market supply curve e. lies above the market supply curve.
Which of the following statements is incorrect?
A. A country cannot be open to international capital flows, control its domestic interest rate and fix its exchange rate. B. A country can be open to international capital flows and fix its exchange rate but could not also control its own domestic interest rate. C. A country can be open to international capital flows, control its domestic interest rate, and fix its exchange rate. D. A country can be open to international capital flows and control its own domestic interest rate but it can't fix its exchange rate.