Suppose the majority of the shares of British Airways stock were sold to a firm in the United States. Assuming all else remains constant, this will
A) create a capital inflow in the United States.
B) decrease the balance of the U.S. financial account.
C) increase net portfolio investment in the United States.
D) decrease the balance of the U.S. current account.
E) decrease foreign direct investment in the United States.
B
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The government tries to protect the competitive economic system by passing and enforcing
A) price controls. B) tariff legislation. C) antitrust laws. D) building codes and zoning laws.
If the market supply curve slopes upward
a. each unit of the good costs more to produce than previously produced units did b. each unit of the good is worth more than the market price c. each unit of the good is worth the market price paid for it. d. the market is efficient e. the market must be imperfectly competitive
If a linear, two-good production possibilities curve has a slope of ?2, then:
A. you have a comparative advantage in the good measured on the vertical axis. B. having an additional unit of the good measured on the vertical axis means giving up ½ of a unit of the good measured on the horizontal axis. C. you have an absolute advantage in the good measured on the vertical axis. D. having an additional unit of the good measured on the vertical axis means giving up 2 units of the good measured on the horizontal axis.
Most monetarists ________ advocate expanding the money supply during bad times and ________ advocate slowing the growth of the money supply during good times.
A. do not; do not B. do not; do C. do; do not D. do; do