Briefly describe the factors that contributed to the U.S. Current Account deficits of the 1990s
What will be an ideal response?
Rapid U.S. economic growth raised income and import demand; economic growth was low or negative for U.S. trading partners, depressing export demand.
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The three sources of private direct investment in developing nations are
A) bank loans, government loans, and Eurobond issues. B) bank loans, portfolio investments, and foreign direct investments. C) portfolio loans, IMF loans, and government loans. D) foreign direct investment, government loans, and Eurobond issues.
Which of the following scenarios would most likely occur with a company that has reported disappointing earnings recently but still looks to be financially stable for quite some time?
A. high long-term solvency ratio but low profitability ratio B. high short-term solvency ratio but low profitability ratio C. high long-term solvency ratio but low activity ratio D. high short-term solvency ratio but low activity ratio
According to the income-expenditure approach, ________ reduce consumption and other elements of aggregate expenditures, resulting in a ________ in real GDP demanded. Thus the aggregate demand curve is ________
a. lower prices; decrease; upward-sloping b. higher prices; increase; downward-sloping c. higher prices; decrease; downward-sloping d. higher prices; increase; upward-sloping
Real GDP per person in Australia was $5626 in 1870. Over the next 130 years, it grew at a compound annual rate of 1.145%. If, however, real GDP per person had grown at an average compound rate of 1.5%, then real GDP per person in Australia in 2000 would have been approximately:
A. $24 716 B. $38 975 C. $53 663 D. $73 828