Until recently, many developing countries
A) encouraged foreign direct investment but discouraged foreign portfolio investment.
B) sealed themselves off from foreign investment.
C) were quite open to foreign investment.
D) encouraged foreign portfolio investment but discouraged foreign direct investment.
B
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The price of coffee rose 40 percent and the quantity of coffee demanded fell by 20 percent. The quantity of doughnuts demanded also fell by 20 percent. From this information, we can conclude that
A) the demand for coffee is elastic. B) the demand for coffee is unit elastic. C) coffee is an inferior good. D) the cross elasticity demand between coffee and doughnuts is -0.5. E) the income elasticity of demand for coffee is 2.
Unemployment compensation, by ________ layoffs at firms whose sales have declined, ________ the natural rate of unemployment
A) encouraging, raises B) encouraging, lowers C) discouraging, raises D) discouraging, lowers
Which of these economic variables is procyclical?
A) consumer spending B) stock prices C) the government bond spread D) all of the above E) none of the above
An increase in the plaintiff's cost of litigation will make the plaintiff ________ likely to settle and pay a ________ amount.
A) more; lower B) less; lower C) less; higher D) more; higher