Assume a consumption function of the following form: C = 500 + .9Y. If income rises by $100, consumption will increase by

Net foreign investment minus net foreign portfolio investment is equal to

A) the balance of trade. B) net foreign financial investment. C) net foreign direct investment. D) capital outflows.

If long-run equilibrium is present in a competitive market, the typical firm in the market will be

a. making economic losses. b. making zero economic profit. c. making economic profit. d. making a rate of return that is higher than the rate earned in other industries. e. both c and d are correct.