An effect of international trade is
A) the increase in the average price of goods as the cost of transportation has to be included.
B) the transmission of ideas around the world.
C) that only countries that have absolute advantage in producing a good can participate.
D) that the United States has a trade surplus.
B
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For foreign direct investment to occur, the purchase has to be more than
A) 8 percent but less than 10 percent of shares in a business located abroad. B) 5 percent but less than 10 percent of shares in a business located abroad. C) 10 percent of shares in a business located abroad. D) 2 percent but less than 5 percent of shares in a business located abroad.
Economists who accept the quantity theory of money favor a monetary rule because they believe the short-run effects of monetary policy are unpredictable and the long-run effects are on the price level, not real output.
Answer the following statement true (T) or false (F)