A nation's international investment position shows its stock of international assets and liabilities at a point in time.
Answer the following statement true (T) or false (F)
True
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What are checkable deposits?
Excess capacity in monopolistically competitive industries results because in equilibrium
A) each firm's output level is too great to minimize average cost. B) each firm's output level is too small to minimize average cost. C) firms make positive economic profit. D) price equals marginal cost.
Which of the following correctly describes the spending multiplier?
a. The initial change in consumption, investment, government spending, or net exports divided by the change in equilibrium GDP. b. An initial increase in aggregate expenditures divided by the equilibrium GDP. c. An initial increase in aggregate expenditures divided by the change in equilibrium GDP. d. The ratio of the change in real GDP to an initial change in any component of aggregate expenditures.
What is wrong in an economy when society can transform 1,000 apples into a tent or a tent into 1,000 apples, but the marginal rate of substitution of apples for tents by consumers is 500? Explain how the market automatically will solve this problem.
What will be an ideal response?