If domestic savings is growing faster than domestic investment, the current account balance should be
A) increasing.
B) decreasing.
C) unchanged.
D) eliminated.
A
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Sale of U.S. government bonds to foreigners is an example of direct foreign investment in the United States
Indicate whether the statement is true or false
If wages and prices become extremely flexible ________
A) there is no trade off between inflation and unemployment B) unemployment can hardly deviate from the natural rate C) it becomes very difficult to differentiate the short-run from the long-run Phillips curve D) all of the above E) none of the above
Market failures ________ and generate ________
A) compel the government to act; regulations B) create monopolies or oligopolies; deadweight loss C) reduce economic efficiency; deadweight loss D) create deadweight loss; externalities
__________ inflation will tend to hurt those whose money received, in terms of wages and interest payments, does not rise with inflation.
a. Unexpected b. Expected c. Flat d. Reduced