An Italian company exchanges euros for dollars from U.S. residents and then uses the dollars to buy U.S. products to sell in its stores in Rome. U.S. residents who exchanged their dollars for euros use the euros to buy bonds issued by French corporations. At this point
a. both U.S. net exports and U.S. net capital outflows have risen.
b. both U.S. net exports and U.S. net capital outflow have fallen.
c. U.S. net exports have risen and U.S. net capital outflow have fallen.
d. U.S. net exports have fallen and U.S. net capital outflow have risen.
a
Economics
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It can be shown that the Nash equilibrium would indicate that without any agreements, the best outcome for each large nation would be to:
a. not impose a tariff. b. impose a tariff. c. find other ways to reward their domestic firms. d. impose a consumption tax.
Economics
If real GDP in year 1 is $72 million and real GDP in year 2 is $87 million, then the growth rate of real GDP is
A) 15 percent. B) $15 million. C) 20.8 percent. D) 17 percent. E) 83 percent.
Economics