Your Uncle Harry gives you stock in Samsung for your birthday. The stock is an example of:
A. foreign direct investment.
B. importing.
C. foreign portfolio investment.
D. exporting.
Answer: C
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If a market is subject to a positive externality,
A) the demand curve reflecting social benefit will be to the right of the demand curve representing private benefit. B) there is only one demand curve. C) the demand curve reflecting social benefit will be to the left of the demand curve representing private benefit. D) private benefit will exceed social benefit.
If injections exceed leakages,
A. The economy will expand. B. Unemployment will rise. C. Disposable income will fall. D. Prices will fall.
If the income elasticity of a good is greater than zero, we say that the good is a:
A. normal good. B. inferior good. C. complementary good. D. substitute good.
If the reserve requirement is 10 percent and a monetary expansion increases excess reserves by $5 million, the total change in the money supply after all rounds of lending are completed is:
A. 5 million B. 100 million C. 50 million