Which of the following is considered a capital inflow?
A. A sale of U.S. financial assets to a foreign buyer
B. A purchase of foreign financial assets by a U.S. buyer
C. A U.S. citizen's repayment of a loan from a foreign bank
D. A loan from a U.S. bank to a foreign borrower
Answer: A
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Country A and Country B initially have the same real GDP per capita. Country A experiences no economic growth, while Country B grows at a sustained rate of 5 percent. In 14 years, Country A's GDP will be approximately ____ that of Country B
a. one-fourth b. one-half c. double d. triple
A federal budget deficit exists when federal government
A. spending exceeds tax revenues in a given year. B. spending is increasing in a given year. C. assets are less than liabilities in a given year. D. taxation is decreasing in a given year.
Business cycle models with flexible prices
A) are all non-Keynesian models. B) were first introduced in the General Theory of Employment, Interest, and Money. C) the only business cycle models in use. D) none of the above.
A temporary decline in productivity would cause the IS curve to
A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) shift up and to the right only if people face borrowing constraints.