When the foreign exchange market is in equilibrium, which of the following will be true?
a. imports + exports = net capital inflow
b. imports - exports = net capital inflow
c. imports - budget deficit = net savings
d. imports + investment = exports + savings
B
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Infrastructure is capital provided by the private sector. True or False
In 2015, exports represented:
A. about 13 percent of U.S. GDP. B. about 1 percent of U.S. GDP. C. about 30 percent of U.S. GDP. D. nearly 20 percent of U.S. GDP.
Wages that are "sticky":
A. pull other prices up or down with them when they change. B. have not changed, in real terms, for decades. C. are stuck where they are and fail to adjust downwards in a recession. D. are pegged to other variables, such as product prices.
Refer to the table above. If the income of the consumer is $24, the optimal choice contains:
A) 1 quart of juice and 1 quart of milk. B) 3 quarts of juice and 4 quarts of milk. C) 4 quarts of juice and 4 quarts of milk. D) 4 quarts of juice and 5 quarts of milk.