This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose the majority of the shares of British Airways stock were sold to a firm in the United ... (Read 89 times)

codyclark

  • Hero Member
  • *****
  • Posts: 538
on: Jun 29, 2018
Suppose the majority of the shares of British Airways stock were sold to a firm in the United States. Assuming all else remains constant, this will
 
  A) create a capital inflow in the United States.
  B) decrease the balance of the U.S. financial account.
  C) increase net portfolio investment in the United States.
  D) decrease the balance of the U.S. current account.
  E) decrease foreign direct investment in the United States.

Question 2

Refer to Table 23-11. Using the table above, calculate the unplanned change in inventories for each level of GDP, and explain what will happen to GDP.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

anyusername12131

  • Sr. Member
  • ****
  • Posts: 327
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

The macroeconomic equilibrium is determined where aggregate expenditure = real GDP. The values for aggregate expenditure for each level of real GDP are given in the table below. The unplanned change in inventories is the difference between aggregate expenditure and real GDP. If there is an unplanned decrease in inventories, firms are selling goods faster than they planned, and this is a signal for firms to increase production. If there is an unplanned increase in inventories, firms are selling goods more slowly than they expected, and this is a signal for firms to decrease production.

Real GDP Aggregate Expenditure Unplanned Change in Inventories Real GDP will...
5,000 5,200 -200 increase
6,000 6,000 0 be in equilibrium
7,000 6,800 200 decrease
8,000 7,600 400 decrease


codyclark

  • Member
  • Posts: 538
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

parker125

  • Member
  • Posts: 332
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Personality differences in the United States Personality differences in the United States
John Locke (1632‑1704) was a British philosopher and physician who laid the groundwork for an ... John Locke (1632‑1704) was a British philosopher and physician who laid the groundwork for an ...
Firm handshake Firm handshake
Prevalence of Food Insecurity in the United States Prevalence of Food Insecurity in the United States
GDP per Capita in the United States, 1870–2009 (Ratio Scale) GDP per Capita in the United States, 1870–2009 (Ratio Scale)
STDs in the United Stated STDs in the United Stated
Video: Central Nervous System Animation

For a complete list of videos, visit our video library