One reason for the huge investment by China into the US economy is the:
A. the desire of China to ‘sink’ the US economy.
B. Chinese investors view that US investments are less stable.
C. large savings rate in China that encourage capital outflow.
D. low savings rate in China which makes the cost of borrowing very low in China.
C. large savings rate in China that encourage capital outflow.
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The producer price index focuses on price changes of domestically produced goods and includes services, construction, and imported goods
Indicate whether the statement is true or false
What happens when the government imposes a unit excise tax on a good?
A) The amount of the tax is added to the current equilibrium price. B) The demand for the newly taxed good decreases. C) That good's supply curve shifts down by the amount of the tax. D) The newly taxed good's supply curve shifts vertically upward by the amount of the per-unit tax being levied.