A Japanese flour mill buys wheat from the United States and pays for it with yen. Other things the same, Japanese
a. net exports increase, and U.S. net capital outflow increases.
b. net exports increase, and U.S. net capital outflow decreases.
c. net exports decrease, and U.S. net capital outflow increases.
d. net exports decrease, and U.S. net capital outflow decreases.
c
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Refer to Table 6-4. Which of the following statements is correct?
A) The publisher's analysis is correct only if the demand is elastic. B) The publisher's analysis is correct only if the demand is perfectly inelastic. C) The publisher's analysis is correct only if the demand is unit elastic. D) The publisher's analysis is correct only if the demand is perfectly elastic.
An equal increase in government purchases and taxes will cause
A) an increase in real GDP. B) an increase in the budget surplus. C) no change in real GDP. D) a reduction in cyclically adjusted budget surplus.
Hale's One Stop and Auto Service competes with Murray's Gas Mart. The local demand is: Qd = 25 - 10P ? P = 2.50 - 0.1 Qd. Both firms sell exactly the same quality of gasoline
Thus, if the firms charge a different price, the lower price firm will capture the entire market share. If the firms charge the same price, they will split the market share. The marginal cost functions are both constant at $1.25. If the firms compete by setting price, what is the market output level? What is the market price level?
When the money supply increases at the same time that velocity is decreasing, total spending will
A) always rise. B) always decline. C) fall if the decrease in velocity is relatively less than the increase in the money supply. D) fall if the decrease in velocity is relatively greater than the increase in the money supply.