In the 1980s national savings declined as a percentage of GDP. Assuming that domestic private investment's percentage share has not declined, this situation requires, ceteris paribus,
A) net foreign investment (NX) to decrease.
B) net foreign investment (NX) to increase.
C) U.S. exports to decrease.
D) A and C are both necessary outcomes.
B
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What will happen when there is a rightward shift in the demand curve?
A) The product price will instantaneously adjust downward. B) Product prices do not change in this situation. C) Producers will decrease the product price. D) A new, higher price is not instantaneously achieved, but the price will rise over time.
Two of the three largest banks in the world are located in
A. the United States. B. Japan. C. Germany. D. the United Kingdom.
Which of the following is incorrect?
A. Floating exchange rates permit countries to have different inflation rates. B. Overall, floating exchange rates discipline countries to have low inflation rates. C. With fixed exchange rates, a country that prefers to have a lower inflation rate than its trading partners will tend to import inflation from its partners. D. Since 1973, high degrees of variability of floating exchange rates may have caused considerable adjustment into or out of trade-oriented production from time to time.
If perfectly competitive firms are earning positive economic profits in the short run, then in the long run other firms will enter the market.
Answer the following statement true (T) or false (F)