Net foreign investment is equal to
A) foreign direct investment.
B) the balance of trade.
C) capital inflows minus capital outflows.
D) net foreign portfolio investment plus net foreign direct investment.
D
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Which of the following transactions would be included in this year's GDP for the United States?
a. You buy a rug imported from Mexico. b. You buy stock in an American textile company. c. You purchase a table over the Internet from a North Carolina furniture manufacturer. d. You purchase a table over the Internet from a Mexican manufacturer.
Here is a consumption function: C = C0 + MPC(Yd). Which of the following is true about the consumption function?
A) Consumption will rise if autonomous consumption or disposable income rise. B) Consumption will fall if autonomous consumption falls or if the MPC rises. C) Consumption will rise if autonomous consumption rises, MPC declines, or disposable income rises. D) For every $1 rise in autonomous consumption, consumption will also rise by $1. E) a and d
Taxation lowers social welfare when the taxed good
A. has marginal social costs above marginal private costs. B. marginal social costs equals marginal private cost. C. is overproduced under a free-market system. D. imposes negative externalities .
Suppose Mark has the option of investing in two different investments that cost $200 each. One promises to earn 5% in compounded interest over the next 5 years. The other promises to earn $255.26 in 5 years. Assume the interest rate is 5%. Which asset will he choose?
What will be an ideal response?