Direct foreign investment is considered an attractive investment because
a. it is usually focused on infrastructure
b. it initiates projects that are later taken over by domestic entrepreneurs
c. it only employs foreign workers so it doesn't interfere with domestic development planning
d. it typically involves bringing into the LDCs new expertise
e. it replaces domestic investment
D
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The proposition that the price of a resource is expected to rise at a rate equal to the interest rate is called the
A) discounted present value. B) derived demand for productive resources. C) diminishing marginal revenue product. D) Hotelling Principle.
Which of the following is not a legitimate reason for maintaining federal budget deficits? a. Deficits boost domestic saving, which in the long run could promote economic growth. b. Deficits help reduce the size and duration of recessions through automatic stabilizers. c. Deficits are used to finance capital projects
d. Public spending through deficit financing wins support from the voters. e. A federal budget deficit stimulates aggregate demand.