One reason for the huge investment by China into the US economy is the:
A. Chinese investors view that US investments are less stable.
B. low savings rate in China which makes the cost of borrowing very low in China.
C. the desire of China to 'sink' the US economy.
D. large savings rate in China that encourage capital outflow.
Answer: D
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When the IMF provides loans to developing countries, it often requires these countries to adopt:
A. a contractionary fiscal policy and an expansionary monetary policy. B. contractionary monetary and fiscal policies. C. expansionary monetary and fiscal policies. D. a contractionary monetary policy and an expansionary fiscal policy.
Comparing proprietorships with partnerships, which is TRUE?
A. In both cases, profits are taxed only once. B. Partnerships outnumber proprietorships 2-to-1 in the United States. C. A proprietor faces unlimited liability for her firm's debts, but in a partnership each partner is only responsible for an even share of the firm's indebtedness. D. Proprietorships generally end with the death of the owner, but partnerships continue as long as at least one partner survives.
In the long run, demand-pull inflation:
A. Starts out with a shift in the AS curve, but no shift of the AD curve B. Starts out with a rightward shift in the AD curve, followed by a resulting leftward shift of the short-run AS curve C. Starts out with a leftward shift in the AD curve, followed by a resulting rightward shift of the short-run AS curve D. Involves a shift of the AD curve only, with no shift of the AS curve
The managers of Movies Plus, a large movie theater, want to practice third-degree price discrimination. The managers have learned that college students have an own price elasticity of demand of 4.0 for tickets at Movies Plus and adults have an own price elasticity of 2.0. If the managers have correctly determined the third-degree profit-maximizing price for adults is $10, what is the third-degree
profit-maximizing price to charge students? A) $5.50 B) $15.00 C) $6.67 D) $12.00