Suppose the majority of the shares of Yahoo stock were sold to an Italian firm. Other things equal, this will
A) increase the balance of the U.S. current account.
B) increase the balance of the U.S. financial account.
C) create a capital outflow in the United States.
D) decrease net portfolio investment in the United States.
B
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Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y + L0.5. Show what happens to the person's labor supply curve when the income tax is cut from 70 % to 30 %. Denote hours worked as H and wage per hour as w
What will be an ideal response?
Union members earn about the same wage level as nonunion members in the same industry
a. True b. False Indicate whether the statement is true or false
Even if all individual demand curves are downwardly sloped, the market demand curve may slope upward
a. True b. False Indicate whether the statement is true or false
When reserve requirements are increased, the
a. excess reserves of commercial banks will decrease. b. excess reserves of commercial banks will increase. c. U.S. Treasury will have to borrow additional funds. d. money supply will rise.