Due to a change in the regulatory structure of a small open economy, the desired capital stock becomes higher for both private investment and government investment
Increased government investment spending is financed by borrowing, not by higher taxes. If both desired investment and government spending rise at the same time, will there be "twin deficits"?
Desired saving shifts left, desired investment shifts right, so the current account balance declines; there are twin deficits.
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As compared to the estimates of the natural rate of unemployment for the United States, those for Europe are
A) higher. B) the same. C) lower. D) higher and more variable.
In the long run, an increase in the quantity of money leads to
A) a smaller percentage increase in the real interest rate. B) a smaller percentage increase in the price level. C) an equal percentage increase in the price level. D) no effect on the price level or on real GDP. E) an equal percentage increase in the real interest rate.
According to monetarist theory, responsibility for the Great Depression lays with ________
A) the Federal Reserve System B) the liberal rulings of the Supreme Court C) the President and Congress of the United States D) unfair trade practices
Young Faces Forever is a skin care company based in the United States that wants to enter the Japanese market. Suppose the managers of Young Faces are aware that there are significant social customs in Japan regarding skin products and these customs are unknown to the managers of Young Faces. All else equal, which of the following entry methods is the least likely to be successful for Young Faces?
A) partnership B) joint venture C) independent entry D) merger