A small open economy has a current account balance of zero. A rise in its investment demand causes
A. a financial account deficit.
B. net borrowing from abroad.
C. income to exceed absorption.
D. a current account surplus.
Answer: B
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A ________ makes investment in established businesses which are publicly traded and takes them private
A) sovereign wealth fund B) capital buyout fund C) hedge fund D) venture capital fund
Payments made to individuals for which goods or services are exchanged are known as ______.
a. co-pays b. deductibles c. transfer payments d. taxes
The liquidity-preference model was first introduced in:
A. 2008 by Ben Bernanke. B. 1776 by Adam Smith. C. 1936 by John Maynard Keynes. D. 1970 by John Kenneth Galbraith.
Exhibit 2-9 Production possibilities curve
If the economy represented in Exhibit 2-9 is operating at Point W:
A. no tractor product must be forgone to produce more food in the current period. B. resources are not fully used. C. some tractor production must be forgone to produce more food in the current period. D. increased food production would be impossible.