Other things the same, if the U.S. interest rate rises, what happens to the net capital outflow of other countries?
As the U.S. real interest rate rises, U.S. bonds become more attractive to both domestic and foreign residents. The resulting reduction in the purchase of foreign bonds by U.S. residents and increase in the purchase of U.S bonds by foreign residents both increase the net capital outflow of foreign countries.
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Jane makes 1000 items a day. Each day she spends 8 hours producing those items. If hired elsewhere she could have earned $250 an hour. The item sells for $15 each. Production occurs seven days a week. If the explicit costs total $150,000 per month, what is her accounting profit?
a. $300,000 b. $60,000 c. $450,000 d. $240,000
We can be sure that the equilibrium price will fall when: a. supply and demand both increase
b. supply and demand both decrease. c. supply increases and demand decreases. d. supply decreases and demand increases.