Which of the following explains why China has received relatively high levels of FDI? A) All of the above B) Heavy investment by the government C) The economy is growing rapidly D) It is a huge economy, with a massive population
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32) Which of the following explains why China has received relatively high levels of FDI?
- A) All of the above
- B) Heavy investment by the government
- C) The economy is growing rapidly
- D) It is a huge economy, with a massive population
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- 3. Which of the following is NOT an item to be considered in BOP calculations? a. Purchase of a U.S. Treasury Bill by a foreign resident. b. A U.S.-based firm manages the development of an oil field in Kazakhstan. c. A consumer buys a VCR made in Korea from a Wal-Mart store. d. A U.S. citizen living in Minnesota travels to Winnipeg, Canada and buys a case of Canadian soda.Suppose the economy's price level is 2 and real GDP is 30 , 000 for the year. Suppose the money supply is 5 , 000. If the money market is in equilibrium, then how many times per year is the typical dollar bill used to pay for a newly produced good or service? 10 8 12 16Suppose an economy is experiencing a high rate of housing foreclosure due to an economic downturn. The government decides to invest in highway construction projects to stimulate economic activity and create jobs. As a result of these projects, the human capital in the construction sector increases, leading to better job prospects. Given the following information: Initial housing foreclosure rate: 8% Increase in highway construction investment: $500 million Percentage increase in human capital in the construction sector: 12% Change in housing foreclosure rate after the construction projects: -2.5% Calculate the new housing foreclosure rate after the highway construction projects.
- 13 Which of the following would increase aggregate demand? Increase in savings. Increase in taxation. Decrease in consumption spending. Increase in government spending.Suppose the economy is operating at potential GDP when It experiences an increase in export demand. How might the economy increase production of exports to meet this demand, given that the economy is already at full employment?Scenario 1: Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income earned on bonds or deposits is taxed at a rate of 20%. Now suppose there is an increase in the tax rate on interest income, from 20% to 25%. Shift the appropriate curve on the graph to reflect this change. This change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to Fall/Rise and the level of investment spending to decrease/Increase Scenario 2: An investment tax credit effectively lowers the tax bill of any firm that purchases new capital in the relevant time period. Suppose the government implements a new investment tax credit. Shift the appropriate curve on the graph to reflect this change. The implementation of the new tax credit causes the interest rate to Fall/Rise and the level of investment to Fall/Rise . Scenario 3: Initially, the government's budget is…
- Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure. The following table shows some information on a hypothetical economy. The table lists real GDP, consumption (C), investment (I), government spending (G), net exports (X – M), and aggregate expenditures (AE). In this problem, assume that investment, government spending, and net exports are independent of the economy's real GDP level. Real GDP C I G X – M AE Unplanned Inventory Investment Direction of Real GDP and Employment $100 $275 $100 $110 -$345 -$40 $200 $100 $110 -$345 $220 -$20 $300 $435 $100 $110 -$345 $0 $400 $100 $110 -$345 $380 $20 $595 $100 $110 -$345 $460 $40 Using the numbers provided in the table, enter the correct numbers in the empty cells. Then, using the dropdown selection menus in the right-most column, indicate whether output will tend to increase, decrease,…True/False and Explain An increase in savings implies a decrease in consumption and therefore a decrease in GDP.47)Which one is TRUE? Select one: a. The larger the MPC, the smaller the multiplier. b. The multiplier is the ratio of the change in autonomous expenditure to the change in real GDP c. The real world multiplier is larger than the textbook multiplier when we take into account the impact of changes in GDP on imports, inflation and the interest rate. d. The real world multiplier is smaller than the textbook multiplier when we take into account the impact of changes in GDP on imports, inflation and the interest rate.
- ) A college is considering investing $6 million to add 10,000 seats to its football stadium. The athletic department forecasts it can sell all these extra seats at each game for a ticket price of $20 per seat, and the team plays six home games per year. If the school can borrow at an interest rate of 14%, should the school undertake this project? (Show your math!) What would happen if the school expected a losing season and could sell tickets for only 5,000 of the seats?Which one of the following statements is FALSE? (2)(a) There are four broad groups of decision‐making units in the economy:households, firms, government and the foreign sector;(b) Savings are an important injection into the circular flow of income andspending in the economy;(c) Taxes are a leakage or withdrawal from the flow of income and spending in the economy;(d) Spending by households on consumer goods and services is calledconsumption spending.1st Fill in the blank options: The economy is in equilibrium, or aggregate expenditure exceeds current output by $225 billion, or aggregate expenditure exceeds current output by $150 billion, or current output exceeds aggregated expenditure by $150 billion, or current output exceeds aggregated expenditure by $225 billion. 2nd Fill in the blank options: keep production the same, or increase production, or decreased production 3rd Fill in the blank options: 0.25 or 0.80 or 0.50 or 0.75 4th Fill in the blank options: 2 or 1.3 or 1 or 4
