Explain the relationship between net exports and net foreign investment
What will be an ideal response?
Net exports equal net foreign investment. If net exports are negative, the people of the country will sell assets and borrow (negative foreign investment) to pay for the surplus of imports over exports. If net exports are positive, the people of the country will buy assets and lend (positive foreign investment).
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If the price of business broadband is greater than that of residential broadband, all else equal,
A) business has greater price elasticity than residential. B) residential has greater price elasticity than business. C) both have positive income elasticity. D) generally speaking, broadband is equally priced.
Generally, marginal costs ____ as quantity increases?
A) rise. B) fall. C) remain constant. D) equal marginal benefits. E) equal total costs.