Assume the United States is currently running a current account deficit. The most effective way of eliminating this current account deficit would be to temporarily ________ government purchases and ________ the domestic money supply
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
D
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Investment is a(n) ________ that changes the ________ of capital.
A. stock; flow B. liability; asset C. asset; liability D. flow; stock
Suppose the majority of the shares of British Airways stock were sold to a firm in the United States. Assuming all else remains constant, this will
A) create a capital inflow in the United States. B) decrease the balance of the U.S. financial account. C) increase net portfolio investment in the United States. D) decrease the balance of the U.S. current account. E) decrease foreign direct investment in the United States.
Songwriters and composers press music companies to lower the price for music downloads because
a. demand for on-line music is inelastic b. profits are maximized where price elasticity of demand is -1.0 c. songwriter royalties are a percentage of sales revenue d. profits and total revenue are maximized at different quantities e. profits are maximized at the same prices as sales revenue
The newest school of economic thought to emerge are _________.
A. the economic behaviorists B. supply side economists C. the new classical economists D. monetarists