Based on the Saving-Investment Diagram, if the difference between values G and E measures the net capital outflow, then ________
A) the difference between values G and E measures the trade surplus
B) the difference between values H and D measures the trade surplus
C) the domestic real interest rate is indicated by B
D) desired saving has decreased
E) none of the above
A
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When net capital flows are positive
A) net foreign investment is negative. B) capital inflows are greater than capital outflows. C) capital outflows are greater than capital inflows. D) A and B are both correct.
How can tax simplification be beneficial to the economy?
What will be an ideal response?
How will an increase in the world price of crude oil influence the economy of an oil-importing country such as the United States?
A. Aggregate supply will decrease, leading to a decrease in real GDP. B. Aggregate supply will increase, leading to an increase in real GDP. C. Aggregate supply will increase, leading to an increase in prices and smaller GDP. D. A change in the price of an imported good will not affect the domestic economy of an oil-importing country.
If the price of oil is $60 per barrel, the quantity of oil supplied is 70 million barrels per day. If the price is $40 per barrel, the quantity of oil supplied is 69 million barrels per day. This implies that the
A) supply of oil is elastic. B) supply of oil is inelastic. C) demand for oil is inelastic. D) demand for oil is elastic.