Permitting the exchange rate to float
A) automatically reduces the real income effects of volatility in aggregate expenditures.
B) will result in dramatic shifts in the balance of payments.
C) will induce locomotive effects between most trading partners.
D) will result in the complete crowding-out effect of fiscal spending.
A
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Foreign direct investment in the United States declined 42 percent in the first quarter of 2009. This means that
A) people or firms in other countries reduced their building of facilities or purchases of facilities in the United States by 42 percent in the first quarter of 2009. B) people or firms in the United States reduced their purchases of stocks and bonds in foreign countries by 42 percent in the first quarter of 2009. C) people or firms in other countries reduced their purchases of stocks and bonds in the United States by 42 percent in the first quarter of 2009. D) people or firms in the United States reduced their building of facilities or purchases of facilities in foreign countries by 42 percent in the first quarter of 2009.
If you borrow $5,000 from your bank to purchase shares of Twitter from your cousin Vinny, this is an example of obtaining ________ financing and purchasing the stock in a ________ market
A) direct; primary B) indirect; secondary C) direct; secondary D) indirect; primary
Which of the following was not a factor that contributed to improved productivity from 1995 to 2009?
A. Surging investment B. Falling energy prices C. Advances in information technology D. Decreased costs for higher education
The opportunity cost of producing one car in Germany is 2,000 bushels of wheat, and the opportunity cost of producing one car in Canada is 1,200 bushels of wheat. The two countries can realize mutual gains from trade if they agree on terms of trade that are
a. greater than 2,000 bushels of wheat per car b. less than 1,200 bushels of wheat per car c. greater than 1,200 bushels of wheat per car and less than 2,000 bushels of wheat per car, and Germany produces wheat d. greater than 1,200 bushels of wheat per car and less than 2,000 bushels of wheat per car, and Germany produces cars e. greater than 1,200 bushels of wheat per car and less than 2,000 bushels of wheat per car, and each country produces both goods