If sales of Saudi Arabian oil to the rest of the world increase and Saudis use the proceeds to buy foreign goods, which of the following increases?
a. Saudi Arabian net exports but not Saudi Arabian net capital outflow
b. Saudi Arabian net capital outflow but not Saudi Arabian net exports
c. both Saudi Arabian net exports and net capital outflow
d. neither Saudi Arabian net exports nor net capital outflow
d
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Total utility: a. generally diminishes as consumption of a good increases. b. always increases as consumption increases
c. increases only as long as marginal utility increases. d. increases as long as marginal utility is positive.
When there are economies of scale in production:
a. long-run average total cost declines as output expands b. long-run average total cost increases as output expands. c. marginal cost increases as output expands. d. the marginal product of an input diminishes with increased utilization.
Exhibit 16-3 Money market demand and supply curves
As shown in Exhibit 16-3, assume the money supply curve shifts rightward from MS1 to MS2 and the economy is operating along the intermediate segment of the aggregate supply curve. The result will be a:
A. higher investment, lower real GDP, and lower price level. B. lower investment, lower real GDP, and lower price level. C. higher investment, higher real GDP, and higher price level. D. higher interest rate and no effect on real GDP or the price level.
A key consideration in the government's decision in the Staples/Office Depot case was that:
A. Staples charged lower prices in locations that were close to an Office Depot store. B. Staples charged higher prices in locations that were close to an Office Depot store. C. Staples and Office Depot had engaged in explicit price fixing. D. Staples and Office Depot would be a natural monopoly if they were allowed to merge.