When a foreign business firm buys or builds capital goods, this is known as
A. foreign direct investment.
B. net foreign domestic investment.
C. net private domestic investment.
D. depreciation.
Answer: A
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The foreign exchange market is the market on which ________ of various nations are traded for one another.
A. stocks and bonds B. international financial securities C. goods and services D. currencies
The first run on a British bank since 1866 occurred in August 2007 at which bank?
A) Liberty Mutual B) Liberty Rock C) Northern Rock D) Bank of England E) First Savings and Loan
When nominal interest rates increase, the opportunity cost of holding money will ________, and the quantity of money demanded by households and firms will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Adverse selection is a situation in which one party, as a result of a contract, has an incentive to alter their behavior in a way that harms the other party to the contract
a. True b. False