A country experiencing an international financial crisis will likely
A) be able to maintain growth and prosperity in its domestic economy, but its export sector will suffer.
B) see an increase in foreign direct investment.
C) see an increase in portfolio investment.
D) encounter difficulty in sustaining its economic growth rate.
D
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Augustus bought his BMW convertible as a new car in 1998 and knows that it is in excellent condition. He now wants to sell it and knows that there are many other similar cars on the used car market that are lemons. As a result:
A) he should be able to sell my car at a premium price because of its excellent condition. B) he will have to accept a lower price for his car because buyers might think that it is a lemon. C) he will not be able to sell his car unless he offers some sort of guarantee. D) he will get the best price for his car by selling it to a dealer.
Autonomous consumption is defined as
A) the level of real consumption spending that is independent of real disposable income. B) the real consumption spending by the autonomous government. C) the level of real consumption spending that is equal to real disposable income. D) the consumption of foreign-made goods independent of exchange rates.
Based on the table showing a summary of fiscal tools, if the government increases its purchases, it is most likely trying to ______.
a. fight inflation
b. enact contractionary policy
c. decrease aggregate demand
d. fight unemployment
Which of these events would be most likely to permanently shift an individual's demand curve for umbrellas to the right?
(A) He moves from a desert community to a rainy city by the ocean. (B) Weather forecasters predict that a major hurricane will hit his city the coming week. (C) The price of umbrellas decreases significantly as inexpensive umbrellas are imported from China. (D) He buys a car, so he no longer needs to walk to and wait at a bus stop every morning to get to work.