When interest rates in the U.S. increase, we could expect:
A. more foreigners investing in U.S. assets.
B. less foreigners investing in U.S. assets.
C. more U.S. citizens investing abroad.
D. less U.S. citizens investing in U.S. assets.
A. more foreigners investing in U.S. assets.
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The cross-elasticity of demand between Homer's Holesome Doughnuts and Krusty's Krispy Crullers is 5.0, which indicates that Homer's doughnuts and Krusty's crullers are
A) complements and the relationship between the two goods is strong (that is, the quantity demanded of doughnuts is very responsive to changes in the price of crullers). B) complements and the relationship between the two goods is weak (that is, the quantity demanded of doughnuts is not very responsive to changes in the price of crullers). C) substitutes and the relationship between the two goods is strong (that is, the quantity demanded of doughnuts is very responsive to changes in the price of crullers). D) substitutes and the relationship between the two goods is weak (that is, the quantity demanded of doughnuts is not very responsive to changes in the price of crullers).
All of the following are responsible for the removal of the formal trade barriers EXCEPT
A) the sustained efforts of the trading partners themselves. B) the General Agreement on Tariffs and Trade (GATT). C) the World Trade Organization (WTO). D) regional trade agreements such as NAFTA. E) the World Bank and the IMF.
The W = MRP ethic states that individuals are paid according to the value of their opportunity cost
Indicate whether the statement is true or false
Which of the following would cause a credit to the U.S. balance of payments?
a. a group of U.S. citizens goes to New Zealand for a vacation. b. General Motors pays a dividend to a citizen of Brazil. c. Lloyd’s of London makes an insurance payment to a U.S. resident. d. Russia cancels its purchases of U.S. wheat and buys wheat from Argentina.