U.S.-based John Deere sells machinery to residents of South Africa who pay with South African currency (the rand)
a. This increases U.S. net capital outflow because the U.S. acquires foreign assets.
b. This decreases U.S. net capital outflow because the U.S. acquires foreign assets.
c. This increases U.S. net capital outflow because the U.S. sells capital goods.
d. This decreases U.S. net capital outflow because the U.S. sells capital goods.
a
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An unanticipated shift to a more expansionary macro-policy that leads to a higher-than-expected rate of inflation will
a. place downward pressure on prices. b. temporarily reduce unemployment. c. temporarily reduce output. d. temporarily reduce the natural rate of unemployment.
Federal poverty assistance programs spend close to which of the following amounts per year?
A) $10 billion B) $150 billion C) $750 billion D) $3.5 trillion
A decline in which of the following types of spending was not generally considered a part of the beginning and continuation of the Great Recession?
A) residential investment spending B) federal government spending C) consumer durables spending D) business investment spending
Refer to Table 2-11. Does either China or South Korea have an absolute advantage and if so, in what product?
A) South Korea has an absolute advantage in both products. B) South Korea only has an absolute advantage in wheat. C) China only has an absolute advantage in digital cameras. D) China only has an absolute advantage in wheat.