Refer to Table 1-6. Using marginal analysis, how many hours should Ivan extend his hours of operations?

During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________

A) rises; rises B) rises; falls C) rises; does not change D) falls; rises E) does not change; falls

Suppose the majority of the shares of Ford stock were sold to a Japanese firm. Assuming all else remains constant, this will

A) increase the balance of the U.S. current account. B) increase foreign direct investment in the United States. C) decrease net portfolio investment in the United States. D) increase the balance of the U.S. financial account. E) create a capital outflow in the United States.