When people choose to invest at home it is called ________, and when they invest abroad it is called ________.
A. savings; net capital outflow
B. investment; net capital outflow
C. savings; net direct investment
D. investment; foreign savings
Answer: B
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What is a household's real income?
What will be an ideal response?
Firms can practice indirect price discrimination by
a. Offering volume discounts b. Using two-part pricing c. Offering a bundle containing a number of units d. All of the above
Which of the following best describes social benefits?
a. The external benefits to other members of society, ignoring the private benefits to market participants. b. The sum of external benefits and private benefits. c. External benefits minus benefits. d. Private benefits minus external benefits.
The most important factor that influences total spending is
a. the interest rate b. real wealth c. expectations regarding future income d. the income tax rate e. real disposable income