When Pierre in Paris, France buys stock in Disney, Inc., he is contributing to:
A. capital outflow from the U.S.
B. capital inflow to the U.S.
C. domestic investment in the U.S.
D. private savings in the U.S.
B. capital inflow to the U.S.
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The nominal interest rate will be less than the real interest rate when
A) the rate of inflation is negative. B) the real interest rate is negative. C) the rate of inflation is positive and increasing. D) the rate of inflation is positive but decreasing.
There is very little intergenerational mobility; the children of the rich stay rich and the children of the poor stay poor
Indicate whether the statement is true or false
Which of the following can reduce the level of economic growth?
A. Crowding out. B. Technological improvements. C. Higher ratios of capital to labor. D. Crowding in.
Explain why a relative price is an opportunity cost
What will be an ideal response?