Which of the following would decrease net exports in the United States?
A) A Mexican citizen purchases 100 shares of stock in IBM.
B) The U.S. government donates $25 million to Mexico to help victims of a hurricane in Mexico.
C) An American party planner purchases 350 piƱatas from Mexico.
D) The government of Mexico purchases 2,000 Dell laptop computers from the United States.
C
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The kinked demand curve exists because consumers make erratic decisions
Indicate whether the statement is true or false
Answer the following questions true (T) or false (F)
1. An increase in the real interest rate will decrease consumption and investment. 2. Retained earnings are always sufficient to finance a firm's rapid expansion in a high-growth economy. 3. Financial markets and financial intermediaries comprise the financial system.