Many governments actively work to:
A. discourage foreign direct investment, in an effort to encourage locals to invest in their own economy.
B. discourage foreign direct investment, in an effort to avoid "crowding out."
C. attract foreign direct investment, hoping it will build up their capital stock when domestic savings aren't sufficient.
D. attract foreign direct investment, so that when foreign companies invest in local firms, they can transfer human capital to local managers.
Answer: C
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The size of a corporation, as measured by stockholders' equity, depends primarily upon
A) current net revenue. B) people's expectations of future earnings. C) the amount of capital invested in the corporation. D) total sales (in dollar terms).
Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession. If the economy had been at potential GDP, it is estimated that tax revenues would have been $60 billion higher and government spending on transfer
payments $50 billion lower. Using these estimates, the cyclically adjusted budget A) deficit was $210 billion. B) deficit was $110 billion. C) surplus was $10 billion. D) surplus was $110 billion.