By itself, if a U.S. firm builds a new factory overseas, U.S. net capital outflow rises
a. True
b. False
Indicate whether the statement is true or false
True
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Consider an economy over the years 2008 and 2009. The output in the economy has remained constant over the two years but the prices of all goods and services have halved. In such a situation,
A) the real GDP of the economy stays the same over the two years. B) the nominal GDP of the economy remains the same over the two years. C) the real GDP of the economy increases over the two years. D) the nominal GDP of the economy increases over the two years.
How could an expansionary fiscal policy increase real GDP and lower the price level?
A) if the aggregate supply increases equals the aggregate demand increase B) if aggregate supply decreases more than aggregate demand increases C) if aggregate supply increases more than aggregate demand increases D) if aggregate supply decreases less than aggregate demand decreases E) if aggregate supply decreases more than aggregate demand decreases
Refer to Table 2-7. What is Minnie's opportunity cost of making a hat?
A) 1/5 of an umbrella B) 1/4 of an umbrella C) 4 umbrellas D) 10 umbrellas
The demand for borrowed funds is
a. directly related to the interest rate. b. inversely related to the growth in gross domestic product. c. a derived demand. d. leads to derived demand for capital goods.