If the wealth effect of an increase in the real wage was greater than the substitution effect of an increase in the real wage
a. the labor supply curve would slope upward.
b. the labor supply curve would slope downward.
c. the labor supply curve would be vertical.
d. the labor demand curve would solely determine the real wage.
B
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Why are foreign investors more likely to invest in U.S. government bonds than in U.S. corporate stocks and bonds?
What will be an ideal response?
The saving rate in the United States fell to nearly zero in the early 2000s. One of the contributing factors to this development was the
A. decrease in consumer confidence in the late 1990s. B. declining real incomes of most American households. C. increased housing wealth. D. rising real interest rates in the United States.
How can an MNE overcome its inherent disadvantages?
A. By producing more than two products in which it has comparative advantage B. By expanding its operation in more than two host countries C. By owning one or more assets that are not owned by its local competitors in the host country D. By borrowing funds from the host country rather than transferring funds from the parent firm
The process of bundling loans together and buying and selling these bundles in a secondary financial market is called
A) open market operations. B) securitization. C) fractional reserve lending. D) seigniorage.