If Rhoda in Hungary buys candy from Matt in Maine for $20, and Matt buys food in his favorite goulash restaurant in Hungary for $20, then the U.S. net exports:
A. is zero and net capital outflow is $20.
B. and net capital outflow both equal $20.
C. equals $20 and net capital outflow is zero.
D. and net capital outflow are both zero.
Answer: D
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A) decreases; increases B) increases; decreases C) increases; increases D) decreases; decreases
Assume a firm is currently producing 100 units of output, total fixed costs are $10,000, and average variable costs are $8. Based on this information we can conclude, with certainty, that the firm's:
A) marginal costs are $8. B) total variable costs are $8000. C) average fixed costs are $2. D) total costs are $10,800.
Keynes's model of the demand for money suggests that velocity is ________ related to ________
A) positively; interest rates B) negatively; interest rates C) positively; bond values D) positively; stock prices
Real GDP =________ where the price level is the ________
A) Nominal GDP × Price level; GDP deflator B) Nominal GDP ÷ Price level; GDP deflator C) Nominal GDP ÷ Price level; CPI D) Nominal GDP × Price level; CPI E) none of the above