When a Peruvian buys a U.S. government bond, from the perspective of Peru, this is a(n):
A. capital inflow.
B. export.
C. capital outflow.
D. import.
Answer: C
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In comparison to firms in other market structures, monopolists:
A) maximize social surplus. B) encourage the entry and exit of new firms. C) set price lower than marginal revenue. D) produce goods that do not have close substitutes.
According to Okun's law, an increase in the unemployment rate will cause ________ in the level of employment and ________ in the level of output
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
Annual income data would be a better index of economic inequality if
a. all households filed tax returns revealing their real income. b. households were more different with regard to age and size characteristics. c. all households were more similar with regard to size, age, education, and other major factors that are linked to income. d. mathematicians could grasp the complexities of the calculations.
Individuals' expectations of higher future income is a
A) rightward shifter of the AD curve. B) leftward shifter of the AD curve. C) reason for moving up along a given AD curve. D) reason for moving down along a given AD curve.