Suppose you read in the Wall Street Journal that actual investment in Mexico in 2003 was precisely the intended investment Mexican businesses had hoped to make. You would conclude that in 2003, the level of inventories in Mexico
a. had not changed but national income fell
b. had not changed and national income was at its equilibrium level
c. increased and national income fell
d. increased along with national income
e. was zero
B
You might also like to view...
________ policies refer to government programs designed to exploit natural comparative advantage by increasing production of a few export goods most closely related to a country's resource base
A) Comparative advantage B) Primary-export-led development C) Import-substitution development D) Inward-looking development
Coupons represent a form of price discrimination because they offer a low-cost way for firms to
A) identify customers with apparently more elastic demand and offer them a lower price. B) retain loyal customers who are not price sensitive. C) offer discounts to consumers who buy larger quantities. D) perfectly price discriminate.