A U.S. mutual fund uses $1 million to buy yen from a Japanese bank. It then uses these yen to buy stocks in a Japanese electronics firm. The Japanese electronic firm then exchanges the $1 million dollars of yen for dollars from a U.S. bank. It uses
these dollars to buy equipment manufactured by a company located in the U.S. As a result of these exchanges, by how much, if at all, and in which direction does: A. U.S. net exports change? B. U.S. net capital outflow change?
A. U.S. net exports rise by $1 million.
B. U.S. net capital outflow rise by $1 million.
Economics
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In the classical theory of aggregate demand, a decrease in the propensity to hold money will
a. shift the aggregate demand curve up. b. Shift the aggregate demand and supply curves up and to the right. c. have no effect on aggregate demand as the money supply changes. d. will increase the money supply
Economics
How is monopolistic competition like perfect competition? How is it like monopoly?
What will be an ideal response?
Economics