If Chileans buy more U.S. stocks and bonds and U.S. residents buy more Chilean wine, then
a. both U.S. net exports and U.S. net capital outflows rise.
b. U.S. net exports rise and U.S. net capital outflows fall.
c. U.S. net exports fall and U.S. net capital outflows rise.
d. both U.S. net exports and U.S. net capital outflows fall.
d
Economics
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The demand for money that arises because holding money over short periods is less risky than holding stocks or bonds is called the
A) transactions demand for money. B) opportunity cost demand for money. C) liquidity demand for money. D) speculative demand for money.
Economics
The idea that two taxpayers in the same economic circumstances should pay the same level of taxes is known as the
A) vertical-equity principle. B) benefits-received principle. C) horizontal-equity principle. D) ability-to-pay principle.
Economics