If domestic savings is less than domestic investment, then
A) reserve assets will increase.
B) the government runs a budget deficit.
C) there will be negative foreign investment.
D) a trade surplus must result.
C
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Which of the following happens if the real interest rate of an economy rises?
A) Labor demand increases. B) Labor supply falls. C) Investment falls. D) Consumption increases.
Why is the Doha Round called the Doha Development Round?
What will be an ideal response?
How can an MNE overcome its inherent disadvantages?
A. By producing more than two products in which it has comparative advantage B. By expanding its operation in more than two host countries C. By owning one or more assets that are not owned by its local competitors in the host country D. By borrowing funds from the host country rather than transferring funds from the parent firm
The Fed's Regulation Q
A) placed a ceiling on the interest rates U.S. banks could pay on time deposits to foreigners. B) placed a ceiling on the interest rates U.S. banks could pay on time deposits. C) placed a ceiling on the amount U.S. residents can deposits in Euro banks. D) placed a ceiling on the amount foreign residents can deposits in domestic American banks. E) placed a ceiling on the amount foreign banks can pay on time deposits.