Gabrielle, an Italian citizen, uses some previously obtained dollars to purchase a bond issued by a U.S. company. This transaction
a. decreases U.S. net capital outflow.
b. does not change U.S. net capital outflow.
c. increases U.S. net capital outflow by more than the value of the bond.
d. increases U.S. net capital outflow by the value of the bond.
b
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In the efficiency wage model, an increase in productivity would
A) increase output but decrease the real wage. B) decrease the real wage but have no effect on output. C) increase output but have no effect on the real wage. D) have no effect on either output or the real wage.
A supply shock, such as the OPEC oil-price increases in the 1970s,
A) can lead to accelerating inflation, if an accommodation policy tries to maintain the pre-shock level of real GDP. B) will cause lower real wages in long-run equilibrium. C) will reduce the natural level of real GDP. D) both B and C
If corporate profits increase rapidly, the main beneficiaries are its
a. common stockholders b. managers c. bondholders d. preferred stockholders e. convertible stockholders
Normative economic statements
A) are statements of "what ought to be." B) are statements of "what is." C) are statements that may be tested by referring to facts and data. D) do not involve value judgments.