GA wind farm in Iowa buys a large turbine generator from a Swedish-owned factory located in Connecticut that uses workers who live in Connecticut. As a result,
a. U.S. investment, GDP, and GNP all increase by the same amount.
b. U.S. investment increases, but GDP and GNP are unaffected by the purchase.
c. U.S. investment and GDP increase by the same amount, but U.S. GNP increases by a smaller amount.
d. U.S. investment and GNP increase by the same amount, but U.S. GDP increases by a smaller amount.
c
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If Irene can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour, then
A) Irene has the absolute advantage in the production of tables. B) Greg has the absolute advantage in the production of chairs. C) Irene has the comparative advantage in the production of chairs. D) Greg has the comparative advantage in the production of chairs.
The countercyclical monetary and fiscal policies that were supposed to produce full employment without inflation don't work in economies characterized by the Phillips curve
Indicate whether the statement is true or false
Very few commodity agreements are successful in bringing together supplier and consumer countries to stabilize commodity prices.
a. true b. false
Which of the following are examples of financial assets that pay a short-term interest rate?
A. Mortgages and government bonds B. Saving deposits and checking accounts C. Stocks and home loans D. Treasury bonds and foreign bonds