Which of the following is correct? When actual leakages exceeds expected injections, then:
a. Inventories rise, unemployment tends to rise, and prices tend to fall.
b. Inventories rise, unemployment tends to fall, and prices tend to rise.
c. Inventories fall, unemployment tends to rise, and prices tend to rise.
d. It is impossible for these two to be unequal.
e. You are mixing apples and oranges. These two macroeconomic variables should not be compared.
.E
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Given a fixed amount of time, a decision to supply labor or not is simultaneously a decision to
a. demand goods and services or not. b. demand leisure or not. c. supply capital and land or not. d. supply leisure or not.
Suppose the United States reduced the tariff on digital camera, allowing foreign-produced cameras to more freely enter the U.S. market. Which of the following would most likely occur?
a. The price of cameras to U.S. consumers would increase, and the demand for U.S. export products would rise. b. The price of cameras to U.S. consumers would fall, and the demand for U.S. export products would fall. c. The price of cameras to U.S. consumers would increase, and the demand for U.S. export products would fall. d. The price of cameras to U.S. consumers would fall, and the demand for U.S. export products would rise.
A change in any of the ceteris paribus conditions for demand leads to a
A. change in supply. B. a good going from an inferior good to a normal good. C. shift of the demand curve. D. movement along the demand curve.
All of the following are true about foreign direct investment (FDI) and portfolio investment EXCEPT
A) increases in the flow of portfolio investments increase the likelihood of financial crisis. B) both portfolio investments and FDI are the same in that they both give their holders a claim on the future output of the foreign economy. C) FDI is relatively illiquid compared to portfolio investment. D) portfolio investments have been on the decline in recent years (or decades).