International investors are more likely to invest in countries
A. where there are barriers to the ownership of capital goods.
B. where there is a significant amount of dead capital.
C. where it is relatively easier to establish property rights to capital goods.
D. which have a high amount of government inefficiency.
Answer: C
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Which of the following is TRUE of the U.S. trade balance and the federal government budget?
A) In most years since the 1970s, both have been in deficit. B) In most years since the 1970s, both have been in surplus. C) The federal government budget deficit was more variable before the 1970s, but the trade deficit has been more variable since. D) Both exhibited greater variability before the 1970s than they have since.
If the marginal propensity to consume were two-thirds, the multiplier would be
a. 1 1/2. b. 1/3. c. 1 2/3. d. 3.
Explain why a firm may hire managers to operate outlets near the firm's headquarters, but may sell franchise rights for the outlets located greater distances from the headquarters. (With a franchise, the firm sells a brand name and a method of doing business to someone who then owns and operates the outlet.)
What will be an ideal response?
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower