If equilibrium is present in the foreign exchange market and a nation is experiencing a trade surplus,
a. the nation must be experiencing a net capital inflow.
b. the nation must be experiencing a net capital outflow.
c. the nation's inflation rate must increase.
d. the nation's interest rate must increase.
B
Economics
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One "problem" with applying the Jorgenson theory of investment to project investment is that
A) the MPK is known with certainty by business executives but the user cost is uncertain. B) the MPK is known with uncertainty by business executives but the user cost is certain. C) both user cost and the MPK are uncertain. D) it does not explain the accelerator.
Economics