Adding foreign financial assets to an investment portfolio raises the riskiness of the entire portfolio of investments.
Answer the following statement true (T) or false (F)
False
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If gains from trade are based solely on comparative advantage, and if all countries have the same opportunity costs of production, then there are no gains from trade.
Answer the following statement true (T) or false (F)
A federal budget deficit can simultaneously reduce inflation and unemployment
a. True b. False Indicate whether the statement is true or false
Which of the following accurately indicates how the recent outbreaks of terrorism have influenced the GDP of western nations?
a. Additional expenditures on security designed to protect individuals from terrorist attacks are subtracted from GDP. b. Additional expenditures on security designed to protect individuals from terrorist attacks are added to GDP as part of output. c. Since expenditures on the prevention of terrorism do not contribute to the well-being of individuals, they exert no impact on GDP. d. Since terrorism is merely a redistribution of output, expenditures on the prevention of terrorism do not contribute to GDP.
An economic expansion caused by a shift in aggregate demand causes prices to
a. rise in the short run, and rise even more in the long run. b. rise in the short run, and fall back to their original level in the long run. c. fall in the short run, and fall even more in the long run. d. fall in the short run, and rise back to their original level in the long run.