The returns from the home country and foreign country capital markets are equalized if:
a. the home country interest rates are higher.
b. the foreign country interest rates are higher.
c. the foreign country has a higher price level.
d. both countries have no capital controls.
Ans: d. both countries have no capital controls.
Economics
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The general form of the production function used in Chapter 10 is
A) Y = A + F(K, N). B) Y = A - F(K, N). C) Y = AF(K, N). D) Y = A/F(K, N).
Economics
A recession is a decline in
A. the inflation rate that lasts six months or longer. B. real GDP that lasts six months or longer. C. the unemployment rate that lasts six months or longer. D. potential GDP that lasts six months or longer.
Economics