The host country's balance-of-payments problem tends to worsen when foreign firms:
a. invest solely in capital-intensive industries.
b. repatriate their profits to the headquarters from the host country.
c. acquire the foreign operations in order to diversify corporate investment holdings.
d. refuse to share technological expertise with the host country.
e. export all products to other countries.
b
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Suppose the capital gains tax is 28 percent and you purchased a house ten years ago for $80,000. If you sold the house today you would get $140,000. Your tax liability would be
A) $39,200. B) $16,800. C) indeterminate without knowing the inflation rate. D) indeterminate without knowing the personal income tax rate.
The two types of market structures that are imperfectly competitive are:
A. perfect competition and monopolistic competition. B. monopolistic competition and oligopoly. C. oligopoly and monopoly. D. monopoly and perfect competition.
Briefly explain why the decline in housing prices led to a major financial crisis
What will be an ideal response?
The quantity of imports will increase when there is
A) a reduction in the real exchange rate. B) an increase in domestic output. C) an increase in foreign output. D) all of the above E) none of the above