Explain the relationship between a current account deficit and the flow of funds.
What will be an ideal response?
A current account deficit is when the country is a net borrower from abroad. This can be referred to as the inflow of our financial capital. This inflow is paired with an outflow to create a flow of funds from a home country to a foreign country.
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Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing quantity is 40 units, the profit-maximizing price is $160, and the marginal cost of the 40th unit is $120 . If the good were produced in a perfectly competitive market, the equilibrium quantity would be 50, and the equilibrium price would be $150 . The demand curve and marginal cost curves are
linear. What is the value of the deadweight loss created by the monopolist? a. $40 b. $100 c. $200 d. $400
When the demand curve is linear, price elasticity of demand:
a. remains constant along the curve. b. is negative in the lower half of the curve. c. decreases as one moves down along the curve. d. is less than one in the upper half of the demand curve.
If a major technological breakthrough occurs, then the:
a. investment demand curve will shift downward. b. investment demand curve will shift upward. c. consumption function will shift downward. d. consumption function will shift upward. e. economy will move to a new point along the existing investment demand curve.
A demand schedule shows the time over which different quantities will be demanded
a. True b. False Indicate whether the statement is true or false