A capital inflow occurs when:
A. money saved domestically is invested in another country.
B. money saved in another country finances domestic investment.
C. there is a negative difference between capital inflows and capital outflows for a country.
D. there is a positive difference between capital inflows and capital outflows of a country.
B. money saved in another country finances domestic investment.
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As capital goods depreciate, potential output falls.
Answer the following statement true (T) or false (F)
Describe the difference between social interest theory of regulation and the capture theory of regulation
What will be an ideal response?
A perfectly competitive firm's short-run supply curve is
A) its marginal cost curve above the shutdown point. B) its average total cost curve above the minimum of the average variable cost. C) its average variable cost curve above the breakeven point. D) horizontal at the market price.
Using the interest rate as a measure of the opportunity cost of holding money, the demand for money curve
A) slopes upward with respect to the rate of interest. B) is not affected by the price level. C) slopes downward with respect to the rate of interest. D) is vertical.