All of the following are differences in capital flows today from the past, EXCEPT
A) the increasing variety of financial instruments.
B) the larger number of companies listed on world stock exchanges.
C) the need to protect from sudden changes in currency values.
D) the problem of volatility in financial capital flows.
E) the reduction in transaction costs for foreign investment.
D
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In the above figure, income is $8, the price of a soft drink is $1, and the initial price of a milkshake is $2. If the price of a milkshake decreases to $1, milkshakes are revealed to be
A) an inferior good. B) a normal good. C) less preferred than soft drinks. D) None of the above answers is correct.
The BP schedule shows the combinations of the interest rate and income
a. that clear the goods market. b. that leads to equilibrium in the balance of payments. c. that equate supply and demand in the foreign exchange market at a given exchange rate. d. and is always positively sloped. e. both b and d.