A U.S. firm exchanges dollars for yen and then uses them to buy Japanese goods. Overall as a result of these transactions
a. both U.S. net capital outflow and U.S. net exports rise.
b. both U.S. net capital outflow and U.S. net exports fall.
c. U.S. net capital outflow rises and U.S. net exports fall.
d. U.S. net capital outflow falls and U.S. net exports rise.
b
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Refer to the scenario above. Instead of the price increase, if there is a fall in price from $6 to $4, the absolute value of Gary's arc elasticity of demand for shirts is:
A) 1.2. B) 2.14. C) 4. D) 5.
Pablo must choose among options A, B, and C. Option A gives him $10,000 for sure. Option B gives him $4,000 with probability 0.5 or $16,000 with probability 0.5. Option C gives him $8,000 with probability 0.5 or $12,000 with probability 0.5
If he receives diminishing marginal utility from wealth, Pablo will A) choose option A. B) choose option B. C) choose option C. D) be indifferent among options A, B, and C.