According to the saving and investment equation, if net foreign investment falls by $35 million,
A) domestic investment will fall by $35 million.
B) national savings will rise by $35 million.
C) national saving in excess of domestic investment will rise by $35 million.
D) national saving in excess of domestic investment will decrease by $35 million.
D
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Suppose you borrow $1,000 at an interest rate of 12 percent. If the expected real interest rate is 5 percent, then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation
A) greater than 7 percent. B) equal to 7 percent. C) less than 7 percent. D) equal to 0 percent.
Suppose that a firm's capital equipment is expected to last indefinitely, that operating expenses on the equipment are negligible, and that the price of the firm's product is expected to remain constant in the future. Under these circumstances, the firm's marginal rate of return on investment is equal to capital's
a. marginal resource cost as a percentage of its marginal revenue product b. marginal product as a percentage of its marginal revenue product c. marginal revenue product as a percentage of its marginal product d. marginal resource cost as a percentage of the price of capital e. marginal revenue product as a percentage of its marginal resource cost
Suppose the demand for the Diane Playing Cards has fallen. Explain what will happen to the firm's demand for loanable funds
If trade corresponds to the Heckscher-Ohlin theory, which of the following is most likely to happen in the long run after a labor-abundant country engages in free trade?
A. The rate of unemployment in the country is most likely to increase. B. The capital to labor ratio used in production in the export sector will increase. C. The rental rates of capital will increase but the wage rates will decline. D. The total output in the economy will decline.