How is foreign direct investment different from other types of international financial flows?
What will be an ideal response?
Foreign direct investment is different from other types of international financial flows. For example, a U.K. bank could give a loan to a Chinese company, which would use the borrowed funds to invest in its business. Like foreign direct investment, this loan would create a flow of funds between the United Kingdom and China, but it would not be foreign direct investment, since the business would not be owned by a company or a person in the U.K. Instead, the Chinese company would owe money to the U.K. bank that originated the loan.
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A perfectly competitive firm breaks even at the level of output where
A) P > ATC B) P < ATC C) P = ATC D) P = MC
When consumer spending exceeds disposable income, all of the following are true except
A. Households are dissaving. B. The APS is negative. C. The APC is greater than 1. D. The MPS is negative.
Explain the difference between gross domestic product and gross national product. Give an example of each
What will be an ideal response?
It has become conventional to classify an economic downturn as a ________ when aggregate ________ declines for two consecutive quarters.
A. trough; demand B. recession; output C. depression; supply D. deflation; spending