When there are two large open economies, if desired international borrowing by the domestic country exceeds desired international lending by the foreign country, then
A) domestic investment must fall.
B) domestic investment must rise.
C) the world real interest rate must fall.
D) the world real interest rate must rise.
D
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If the Fed sells government securities to the general public in the open market, the ________.
A. public gives the securities to the Fed in exchange for a Fed check, which when deposited at commercial banks will increase their reserves at the Fed B. Fed gives the securities to the public; the public pays for the securities by writing checks that when cleared will decrease commercial bank reserves at the Fed C. Fed gives the securities to the public; the public pays for the securities by writing checks that when cleared will increase commercial bank reserves at the Fed D. public gives the securities to the Fed in exchange for a Fed check, which when deposited at commercial banks will decrease their reserves at the Fed
A nation has a comparative advantage in a good when it has a
A) higher opportunity cost of producing the good. B) tariff in place protecting the producers of the good. C) higher absolute cost of producing the good. D) lower absolute cost of producing the good. E) lower opportunity cost of producing the good.
According to the graph shown, if the economy opens itself to free trade, it will become a:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.
A. net exporter.
B. net importer.
C. autarky.
D. quota rent seeker.
Assuming one can derive a correct input-output table, are there still any reasons to prefer the market to central planning?