If consumption expenditures increased by $150 million, while GDP remained the same, which of the following could have occurred, all else equal?
a. Exports increased by $150 million
b. Imports decreased by $150 million
c. Net exports increased by $150 million
d. Net exports decreased by $150 million
e. Private investment increased by $150 million
D
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A competitive equilibrium
A) is always economically efficient. B) is efficient only if there is an externality. C) is economically efficient only given some special conditions. D) does not exist without government taxation.
Answer the following statements true (T) or false (F)
1. As more firms enter a monopolistic competitive industry, average revenue will fall for existing firms. 2. In an oligopoly, the pricing policy of each firm is independent of that of other firms. 3. A kinked demand curve results when one firm’s price changes are followed downward but not upward by competing firms. 4. In the long run, economic profits tend to be eliminated under conditions of monopolistic competition. 5. Predatory pricing involves charging different customers different prices for the same good.
If the reserve requirement for a bank is $200,000 for a deposit of $1 million, then the money multiplier is:
a. 1.25 b. 2.0 c. 5 d. 20
________ refer(s) to purchasing shares in a foreign enterprise largely owned and controlled by the investor.
A. Portfolio investment B. Official capital flows C. Short-term lending D. Direct investment