Suppose that U.S. citizens purchase more cars made in Korea, and Koreans purchase more bonds issued by U.S. corporations. Other things the same, these actions
a. raise both U.S. net exports and U.S. net capital outflows.
b. raise U.S. net exports and lower U.S. net capital outflows.
c. lower both U.S. net exports and U.S. net capital outflows.
d. lower U.S. net exports and raise U.S. net capital outflows.
c
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Since capital gains are only taxed when an investor sells an asset and realizes the gain, a possible result is:
A) the locked-in effect B) double taxation C) an increase in capital losses D) limited liability
Suppose your neighbor likes to repair motorcycles in his front yard during evenings and on weekends, and he earns $400 per week from this work
However, the sight of piles of greasy motorcycle parts and the additional noise and traffic caused by his customers reduces your value of living in this neighborhood by $300 per week. If your neighbor has a right to operate this business, what is the efficient outcome? A) He continues to operate the business. B) You can pay him to move the business to another location. C) He pays you to let him continue working on motorcycles at his home. D) There is no efficient outcome from this situation.
If we allow interpersonal comparisons of utility, and the law of diminishing marginal utility holds, then what can we reasonably suppose about the marginal utility of Bill Gates' millionth dollar?
a. It is less than the marginal utility of your hundredth dollar. b. It is more than the marginal utility of your hundredth dollar. c. It is equal to the marginal utility of your hundredth dollar. d. It is equal to zero. e. It yields higher satisfaction than your hundredth dollar.
Unions may lower real wages in the nonunion sector because
A. Union firms can easily hire nonunion workers for a lower wage. B. Workers who are displaced by higher wages in the unionized sector increase the labor supply in the nonunion sector. C. Nonunion firms adjust wages to avoid the threat of unionization. D. Nonunion firms have difficulty attracting skilled workers away from the unions.