When there is political instability in another country, the United States can expect
A) an increase in the capital account balance due to an increase in the current account.
B) an increase in the capital account balance due to the movement of assets to the U.S.
C) a decrease in the balance of payments due to a decrease in special drawing rights.
D) a decrease in the balance of payments due to a decrease in the demand for goods and services.
B
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Classical economists reject the laissez-faire theory that the economy would self correct to full employment without government interference
a. True b. False Indicate whether the statement is true or false
In the long run in perfectly competitive markets, individual firms will operate at very different output levels
a. True. b. False.
According to the KOF Swiss Economic Institute's globalization indices for the world, globalization
A) has been on a downward trend. B) has been constant since 1970. C) was on an upward trend in the 1970s and 1980s, but has more recently been on a downward trend. D) has been on an upward trend.
If an economy produces 100 pencils and 100 pens, and pencils sell for twice as much as pens, ________.
A. nothing can be said about the relative importance of pens and pencils in the economy B. pencils are weighted as equally important in the economy as pens C. pencils are weighted as twice as important in the economy compared to pens D. pens are weighted as twice as important in the economy compared to pencils