If purchases of French assets by foreigners are less than French purchases of foreign assets, then France has a
a. positive net capital outflow and a trade surplus.
b. positive net capital outflow and a trade deficit.
c. negative net capital outflow and a trade surplus.
d. negative net capital outflow and a trade deficit.
a
You might also like to view...
The price of gasoline rises by 33 percent to $3.50 a gallon and stays at that price for the next two years. The quantity of gasoline demanded two years from now will be
A) the same as one month after the price hike. B) greater than one month after the price hike. C) less than one month after the price hike. D) the same as it would be if the price hike had never occurred.
As wages rise, the substitution effect induces households to
A) choose leisure rather than supplying labor in the labor market. B) choose supplying labor in the labor market rather than engage in leisure. C) reduce the opportunity cost of leisure. D) reduce the economic rent from leisure.
In the futures market, the difference between the price of the futures and the underlying asset is eliminated by
A) speculators. B) hedgers. C) arbitrageurs. D) longs.
A firm should use marginal analysis when making a price-output decision.
Answer the following statement true (T) or false (F)