The sum of national saving and capital inflows from abroad must equal:
A. capital outflows.
B. aggregate demand.
C. domestic investment in new capital goods.
D. the trade deficit.
Answer: C
You might also like to view...
All of the following are advantages of currency pegging EXCEPT
A) it reduces exchange rate risk. B) it is a check against inflation. C) it provides protection for firms that have taken out loans in foreign currencies. D) it keeps the exchange rate closer to its equilibrium rate.
If an economy's population grows at 3 percent and income grows at 3 percent, then
a. per capita income is declining b. the economy's standard of living is increasing c. per capita income is negative d. per capita income is constant e. human capital per capita is constant
ALCOA was found guilty of violating the antitrust statutes in 1945 because it:
A. forced competing firms out of business with unfair business practices. B. used its knowledge of the market to expand its capacity before any competitors had a chance to enter the market. C. had engaged in unfair pricing practices. D. exploited its monopoly power to charge high prices.
Test of the HO theory have clearly been successful
Indicate whether the statement is true or false