A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. The country is currently running a financial account deficit. The imposition of the capital controls will cause
A) net exports to increase.
B) real domestic interest rates to rise.
C) real world interest rates to fall.
D) desired national saving to fall.
D
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If you are willing to sell your car business for $500,00 . and someone offers you $420,00 . for it, this transaction will generate:
a. There is no surplus created b. $80,00 . worth of seller surplus and unknown amount of buyer surplus c. $40,00 . worth of buyer surplus and $40,00 . of seller surplus d. $80,00 . worth of buyer surplus and unknown amount of seller surplus
The Medicare pay-as-you-go system is jeopardized by
a. an overly generous fee schedule that pays physicians more than private insurance for most procedures. b. the changing demographics of the U.S. population with an increasing percentage over the age of 65 c. a reliance on the premiums paid by the elderly themselves to fund a majority of the total cost of the system. d. allowing physicians to balance bill their patients. e. the rising costs of long-term care.