A. larger savings pool available to finance domestic spending
B. higher interest rate which leads to lower domestic investment
C. loss of funds to trading partners overseas
D. decrease in its services exports to other countries
Related Mcqs:
- Which of the following country was not a major LDC debtor in 2001 ?
A. Brazil
B. Argentina
C. Thailand
D. Malaysia - Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
XA. wages and rents should fall in Country A
B. wages and rents should rise in Country A
C. wages should rise and rents should fall in Country A
D. wages should fall and rents should raise in Country A - How is termed the legal proceeding in which debtor remains unable to pay his creditors in full ?
A. Bankruptcy
B. Default
C. Total loss
D. Crash - What is called the situation in which a debtor remains unable to pay his creditors in full ?
A. Bankruptcy
B. Default
C. Total loss
D. Crash - Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the long run ?
A. Output falls; prices are unchanged from the initial value
B. Price fall; output is unchanged from its initial value
C. Output and the price level are unchanged from their initial values
D. Prices rise; output is unchanged from its initial value - Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the short run ?
A. Price fall; output rises
B. Price fall; output falls
C. Price rise; output fall
D. Price rise; output rise - Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product ?
A. Theory of factor endowments
B. Theory of overlapping demands
C. Economies of scale theory
D. Product life cycle theory - Referring to the above table, the U.S balance of international indebtedness suggests that the U.S is a net ?
A. debtor
B. creditor
C. spender
D. exporter - For the first time since World War I, in the mid-1980s the United States became a net international ?
A. exporter
B. importer
C. debtor
D. creditor - Suppose the economy is initially is long run equilibrium Then suppose there is a drought that destroys much of the wheat crop According to the model of aggregate demand and aggregate supply, what happens of prices and output in the short run ?
A. Price rise; output falls
B. Price fall; output rises
C. Price rise; output rises
D. Price fall; output falls
