If domestic residents are restricted in their ability to purchase foreign assets then their government is imposing:
A. controls on capital outflows.
B. controls on both capital inflows and outflows.
C. fixed exchange rates.
D. controls on capital inflows.
Answer: A
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In the binary dependent variable model, a predicted value of 0.6 means that
A) the most likely value the dependent variable will take on is 60 percent. B) given the values for the explanatory variables, there is a 60 percent probability that the dependent variable will equal one. C) the model makes little sense, since the dependent variable can only be 0 or 1. D) given the values for the explanatory variables, there is a 40 percent probability that the dependent variable will equal one.
When the U.S. Treasury sells bonds to the public to finance government spending and then the Fed buys the bonds through open-market purchases, the Fed is
a. monetizing the debt. b. decreasing the money supply. c. decreasing bank reserves. d. increasing the difficulty of raising funds for government spending.
Does voluntary exchange create wealth (value)?
What will be an ideal response?
The equation, ?Y/Y = ?A/A + aK?K/K + aN?N/N, is known as
A. the productivity formula. B. the Solow model. C. the production function. D. the growth accounting equation.