Capital flight refers to the fact that both human and financial capital
A. leave developed countries in search of a higher rate of return.
B. leave developing countries in search of a higher rate of return.
C. flow into developing countries to invest in risk free investments.
D. flow into developing countries to build much needed infrastructure.
Answer: B
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Net exports are negative when
A. imports exceed exports. B. depreciation exceeds exports. C. exports exceed imports. D. net exports exceed imports.
On the 45-degree line diagram, for points that lie below the 45-degree line
A) planned aggregate expenditure is less than GDP. B) planned aggregate expenditure is greater than GDP. C) planned aggregate expenditure is equal to GDP. D) planned aggregate expenditure is less than aggregate income.
All of the following are differences in capital flows today from the past, EXCEPT
A) the increasing variety of financial instruments. B) the larger number of companies listed on world stock exchanges. C) the need to protect from sudden changes in currency values. D) the problem of volatility in financial capital flows. E) the reduction in transaction costs for foreign investment.
Most Americans receive their health care:
a. as a consequence of military service. b. from Medicare. c. from employer based insurance. d. by direct purchase.