An American retailer sells dollars to obtain euros. It then uses the euros to buy ready-to-assemble furniture from Sweden. These transactions
a. increase U.S. net capital outflow because foreigners obtain U.S. assets.
b. decrease U.S. net capital outflow because foreigners obtain U.S. assets.
c. increase U.S. net capital outflow because the U.S. buys capital goods.
d. decrease U.S. net capital outflow because the U.S. buys capital goods.
b
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Figure 4-4
In Figure 4-4, an increase in population will change demand from
A. D1to D2. B. D2to D1. C. D3to D2. D. D3to D1.
The demand for labor and other factors of production typically decline in a recession because those factors
A. Are derived from the demand for final output, which also declines in a recession. B. Are no longer offered for sale in factor markets. C. Have become more expensive than before the recession. D. Have become relatively scarcer than before the recession.
The larger the fraction of an investment financed by borrowing
A) the greater the potential return and potential loss on that investment. B) the smaller the potential return and potential loss on that investment. C) the greater the potential return and the smaller the potential loss on that investment. D) the smaller the potential return and the greater the potential loss on that investment.
M1 is usually larger than M2
Indicate whether the statement is true or false