If marginal revenue exceeds marginal cost, then a profit-maximizing perfectly competitive firm should:
a. increase output.
b. decrease output.
c. leave output unchanged.
d. increase price.
a
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If U.S. imports increase, the sum of the balance of payments accounts (the sum of the current account plus capital and financial account plus official settlements account)
A) becomes negative. B) becomes positive. C) becomes negative or positive depending on the government budget deficit or surplus. D) does not change.
Which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market?
A. A decrease in domestic interest rates B. An increase in foreign interest rates C. Domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices D. Stable domestic prices while the nation's trading partners are experiencing 10 percent inflation
The president of the ________ Federal Reserve Bank is always a member of the FOMC
A) Washington, D.C. B) Boston C) New York D) Minneapolis
Which of the following is true for a multinational enterprise (MNE)?
A. It usually transfers its liabilities to its foreign subsidiaries. B. It usually provides intangible assets to its affiliates for their usage. C. Its affiliates usually get nearly all of their financing from the direct investment flows. D. Its home-country tax burden is mostly borne by its foreign affiliates.