When the U.S. real interest rate falls, purchasing U.S. assets becomes
a. less attractive and so U.S. net capital outflow rises.
b. less attractive and so U.S. net capital outflow falls.
c. more attractive and so U.S. net capital outflow rises.
d. more attractive and so U.S. net capital outflow falls.
a
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Holding other things constant, increases in the price level in the US will
a. Cause the dollar to gain value b. Cause the dollar to lose value c. Does not affect the dollar value d. None of the above
Which of the following statements is true?
A. The price shock theory of the business cycle is endogenous. B. Across the board over investment, particularly in the telecommunications industry, prior to 2001 caused a recession in that year. C. When the Index of Leading Indicators turns downward, a recession almost always follows. D. The terrorist attacks on 9/11 caused the recession of 2001.
As a possible approach to eliminating the government budget deficit, increasing taxes on the rich only would
A. lead to a greater number of entitlements. B. not lead to a significant increase in tax revenues. C. lead to a significant increase in tax revenues. D. lead to an increase in real GDP.
At equilibrium, quantity sold equals the quantity bought. This implies that
A) to sell more, producers require more in payment than consumers are willing to pay. B) government regulation is necessary. C) to sell less would require a lower price but would yield greater profit. D) those who don't buy have been treated unfairly.