In the open economy model, the supply of loanable funds comes from national saving and net capital outflow
a. True
b. False
Indicate whether the statement is true or false
False
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You would be more likely to find a motel room than a camping site if you were traveling through the West during the height of the tourist season and had no advance reservation if
A) camping sites are expensive to maintain. B) camping sites are less numerous. C) most camping sites were managed by government agencies. D) most motels do not accept advance reservations. E) motels more often accept credit cards.
Other things being equal, if input prices rise in a country, then there would be
A) cost-push inflation. B) demand-pull inflation. C) cost-push deflation. D) more production and a lower price level.
If the Gini coefficient is greater for the United Kingdom than for Japan, we can conclude that the
A. Distribution of income in the United Kingdom is closer to being equal than in Japan. B. Distribution of income in the United Kingdom is as equal as it is in Japan. C. Relative distributions of income in the two countries are the same. D. Distribution of income in the United Kingdom is less equal than in Japan.
Suppose two neighbors share a park. One neighbor, Al, leaves trash in the park. This bothers the other neighbor, Bert. According to Coase's Theorem, the optimal level of trash in the park can be achieved if
A) Al is fined by the government. B) Al has the right to leave trash and Bert cannot do anything about it. C) Al has the right to leave trash and Bert can pay him to limit his dumping. D) Bert moves.