When the flow of money from the foreign countries to the domestic firms equals the flow of money from the home country to the foreign firms, _____
a. a trade surplus exists
b. an equal amount of agricultural and manufactured products are exported
c. a trade deficit exists
d. an equal amount of goods and services are imported
e. the value of net exports is zero
e
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The deposit expansion multiplier would increase if the Fed were to
A) raise the required reserve ratio. B) lower the required reserve ratio. C) raise the discount rate. D) sell bonds.
Supply is elastic if
A) a 1 percent change in price leads to a larger percentage change in quantity supplied. B) a 1 percent change in price leads to a smaller percentage change in quantity supplied. C) the slope of the supply curve is positive. D) the good in question is a normal good.
An expansionary gap is closed in the long run by a(n): a. rightward shift of the short-run aggregate supply curve
b. leftward shift of the short-run aggregate supply curve. c. movement to the right along a fixed short-run aggregate supply curve. d. increase in aggregate demand. e. decrease in aggregate demand.
Subjective probabilities
A. are often inaccurate. B. are seldom used in management decisions. C are usually identical to objective probabilities. D. All of the above