Foreign aid:
A. provided by developed countries to developing countries represents about 10 percent of the GDP of developed countries.
B. is an important source of funding for investment in most developing countries.
C. does not contribute much to domestic investment in most developing countries.
D. is largely wasted in most developing countries because it comes with no strings attached.
Answer: C
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Until 2007, the price of sport utility vehicles (SUVs) rose and each year more were purchased. This experience suggests that
A) there must have been technological advances in the way SUVs are produced. B) the "law of demand" does not hold true in this market. C) there must have movement leftward along the supply curve for SUVs. D) there must have been a rightward shift of the demand curve for SUVs.
Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. The base year is 2012. Nominal GDP in 2012 is equal to
A) $500. B) $625. C) $640. D) $800. E) $100.
"The current account records foreign investment in a nation minus investment abroad." Is the previous statement correct or incorrect?
What will be an ideal response?
When a U.S. investor buys a bond issued in a foreign country,
A) the balance on the current account decreases. B) the balance on the capital account decreases. C) the balance of trade decreases. D) the balance on the financial account decreases.