If net exports are equal to net foreign investment
A) the current account balance is equal to the negative of the financial account balance.
B) the balance of payments is zero.
C) net capital inflows are equal to imports minus exports.
D) All of the above are true when net exports are equal to net foreign investment.
D
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In the two-period model with limited commitment, if the collateral constraint binds
A) increases in the present value of collateral increase current consumption and reduce future consumption. B) increases in the present value of collateral increase current consumption one-for-one. C) increases in the present value of collateral decrease current consumption and increase future consumption. D) increases in the present value of collateral increase current consumption less than one-for-one.
Which of the following utility functions has the same MRS as U(q1,q2 ) = q1 q2?
A) q11/2 q21/2 B) q1 + q2 C) q11/2 + q21/2 D) (q11/2 + q11/2 )2
Refer to the information provided in Table 20.3 below to answer the question(s) that follow. Table 20.3
Refer to Table 20.3. If the exchange rate is $1 = 3 euros, then
A. Belgium will import both raspberries and chocolate. B. the United States will import raspberries and Belgium will import chocolate. C. the United States will import chocolate and Belgium will import raspberries. D. the United States will import both raspberries and chocolate.
Ravi notices that all of his neighbors who own cats are also divorced, and concludes that cat ownership must result in divorce. Ravi is
A. correct in his analysis. B. describing regression discontinuity. C. describing difference-in-differences. D. confusing correlation and causation.