An inflow of capital and a trade deficit are more dangerous when
a. the inflow of capital is channeled into private investment.
b. the inflow of capital is used to finance current consumption and/or channeled into unproductive projects.
c. the unemployment rate of the country is low, because this will mean the capital inflow will be inflationary.
d. the investment rate is already high and the unemployment rate low.
B
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The measurement of GDP includes
A) nonmarket goods such as homemaking and child-rearing. B) the benefits of clean air and water. C) estimated values of activity in the underground economy. D) purchases and sales of goods produced in previous periods.
The increased willingness of women to enter the workforce has most likely lead to
a. an increase in labor demand, higher real wages, and a lower price level. b. an increase in labor supply, higher real wages, and a lower price level. c. an increase in labor supply, higher real wages, and a higher price level. d. a decrease in labor demand, lower real wages, and no effect on the price level. e. none of the above.
In repeated games, all of the below make it easier to get out of bad situations except
a. Be nice, no strikes first b. Respond immediately to rivals c. Punish competitors as much as you can d. Make sure your competitors can easily interpret your actions
What happens to domestic investment as the real interest rate rises? Explain your answer