An increase in the budget deficit causes net capital outflow to
a. rise, because the supply of loanable funds shifts right.
b. rise, because the demand for loanable funds shifts right.
c. fall, because the supply of loanable funds shifts left.
d. fall, because the demand for loanable funds shifts right.
c
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The unemployment rate is the:
A. percentage of the labor force that is out of work. B. percentage of the population that is out of work. C. number of workers unemployed. D. number of workers in the labor force.
Consumers have been buying fewer CDs as downloadable music has become easier to purchase and use. We would represent this as
A) a leftward shift of the demand curve for CDs. B) a rightward shift of the demand curve for CDs. C) a change in the price of CDs. D) a leftward shift of the supply curve for downloadable music.
The product life cycle theory of comparative advantage predicts that a new product will first be produced and exported by:
a. the nation that was first to demand the new product. b. the first firm to successfully copy the technology. c. the nation in which it was invented. d. the countries with the most stable economy and fewest restrictions on foreign trade. e. the company with the most extensive network of international distributors for the product.
According to the efficient markets hypothesis, which of the following would decrease the price of stock in Veblen's Leisure Company?
a. Veblen announces, just as everyone had expected, that it has fired its CEO who has been accused of ethics violations. b. Veblen announces, as the market had expected, that its profits were low. c. Fundamental analysis published by KM Financial shows that Veblen's stock is undervalued. d. A highly anticipated book is published by a Veblen insider which details Veblen's innovative technology in plain English, information that was previously unavailable to the public and which will now be used by Veblen's competitors.