A capital inflow occurs when a
A) domestic resident purchases a domestic asset.
B) domestic resident purchases a foreign asset.
C) foreign resident purchases a domestic asset.
D) foreign resident purchases a foreign asset.
C
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A free good is a good whose existence requires no opportunity cost to produce. How is this different from a good that is offered for a price of zero?
What will be an ideal response?
The assumption underlying economic theory is that
A) people respond only to negative incentives, not to positive ones. B) choices are affected by incentives. C) value judgments do not play a role in the economic decisions people make. D) money is the only incentive that matters.
Which of the following cultural events likely increased the demand for the associated product?
A) the banning of cigarette advertising on television B) the inclusion of Reese's Pieces in the movie E.T. C) increased environmental awareness about the impacts of sport utility vehicles (SUVs) D) concerns over "Mad Cow" disease in beef
You have a bond that pays $60 per year in coupon payments. Which of the following would result in an increase in the price of your bond?
A) The price of a share of stock in the company falls. B) Coupon payments on newly-issued bonds fall to $50 per year. C) Coupon payments on newly-issued bonds rise to $80 per year. D) The likelihood that the firm issuing your bond will default on debt increases.