Purchases of domestic assets by foreign firms or households is called a:
A. trade deficit.
B. trade surplus.
C. capital outflow.
D. capital inflow.
Answer: D
You might also like to view...
"As part of the financial crisis bailout plan in 2009, the Federal Reserve bought stakes in banks. This policy will result in an increase in the inflation rate." This is an example of
A) a positive statement. B) a normative statement. C) a microeconomic statement. D) an economic model.
A major problem of owning a corporation is unlimited liability.
Answer the following statement true (T) or false (F)
If individuals behave irrationally in some circumstances, why do economists typically assume that they behave rationally? a. The assumption of rationality allows economists to make powerful statements that apply the majority of the time. b. The assumption of rationality was used before psychologists discovered ways in which individuals behave irrationally. c. The assumption of rationality is
used because economists do not understand principles of psychology. d. The assumption of rationality has yet to be refuted with scientific evidence.
From 2005 to 2006, the U.S. economy experienced significant inflation because the aggregate demand curve shifted outward more than the aggregate supply curve shifted outward.
Answer the following statement true (T) or false (F)