In the shortrun (specificfactors) model, foreign direct investment is expected to cause a(n) ________ in the production of the capitalintensive good and a(n) ________ in the production of the landintensive good in the receiving country
a. decrease; decrease
b. increase; decrease
c. decrease; increase
d. increase; increase
Ans: b. increase; decrease
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Use the figure below to answer the following question.
An increase in price, all else held constant, would cause a change from
A. point 4 to point 5. B. point 1 to point 3. C. point 3 to point 4. D. point 5 to point 1.
Thrift institutions
A) include commercial banks and investment firms. B) include credit unions but not savings and loan associations. C) do not offer transaction deposits. D) receive most of their funds from the public's savings deposits.
The economic policy response to the 2001 recession consisted of
A) a rapid change in fiscal policy and monetary policy. B) a sluggish change in fiscal policy and monetary policy. C) a rapid change in fiscal policy and a sluggish change in monetary policy. D) a sluggish change in fiscal policy and a rapid change in monetary policy.
A decrease in taxes
a. increases GDP as much as a decrease in government purchases b. increases GDP less than an equal increase in government purchases c. decreases GDP more than an equal decrease in government purchases d. changes GDP but in an unpredictable way because some people consume more than others and others save more than some e. increases consumption but has no effect on GDP