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Author Question: When net capital flows are positive, A) net foreign investment is negative. B) capital inflows ... (Read 130 times)

ec501234

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When net capital flows are positive,
 
  A) net foreign investment is negative.
  B) capital inflows are greater than capital outflows.
  C) capital outflows are greater than capital inflows.
  D) A and B are both correct.

Question 2

Refer to Figure 16-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and no fiscal or monetary policy is pursued, then at point B
 
  A) the unemployment rate is very low.
  B) there is pressure on wages and prices to fall.
  C) income and profits are falling.
  D) firms are operating at below capacity.
  E) the economy is below full employment.



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joneynes

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Answer to Question 1

D

Answer to Question 2

A





 

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