A German mutual fund sells euros to a U.S. bank for $20,000 . The mutual fund then uses these dollars to purchase a bond issued by United Express, a U.S. delivery company. As a result of these two transactions, what happened to U.S. net capital outflow?
a. It fell by $40,000.
b. It fell by $20,000.
c. It was unchanged.
d. It rose by $20,000.
c
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The profits of business firms, defined as the difference between total revenue and total cost, are not zero because
A) capitalists have a near monopoly over the means of production. B) information is a scarce good. C) the government defines some opportunity costs as revenue in order to increase tax receipts. D) there would be no investment if firms did not earn positive profits.
The table above represents the marginal cost and marginal benefit associated with pizza (in terms of movies). What quantity of pizza should be produced if resources are to be used efficiently?
A) 5 pizzas B) 6 pizzas C) 7 pizzas D) 8 pizzas
Please describe in detail a self-fulfilling currency crisis
What will be an ideal response?
Keynes argued that the primary determinant of the level of economic activity is
A. the amount of money there is to spend. B. the aggregate price level. C. the demand for labor. D. the aggregate demand for goods and services.