Question

Suppose Paul, a Romanian citizen, builds a telescope factory in Israel. What are the effects of...

Suppose Paul, a Romanian citizen, builds a telescope factory in Israel. What are the effects of these expenditures?
Select one:
a. They decrease Romanian net capital outflow, but increase Israeli net capital outflow.
b. They increase Romanian and Israeli net capital outflow.
c. They increase Romanian net capital outflow, but Israeli net capital outflow remains unchanged.
d. They increase Romanian net capital outflow, but decrease Israeli net capital outflow.
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer-Suppose Paul, a Romanian citizen, builds a telescope factory in Israel. What are the effects of these expenditures, the correct answer is option D, they increase Romanian net capital outflow but decrease Israeli net capital outflow because the direct benefit of building a telescope will directly be benefitted to the Romanian country economy as income from the factory will be used are an expense in Roman.

Option A is an incorrect answer because there will be an increase in Romanian net capital outflow, not a decrease in net capital outflow and it will decrease Israeli net capital outflow.

Option B is an incorrect answer because they increase Romanian net capital outflow but not increase Israeli net capital flow.

Option C is an incorrect answer They increase Romanian net capital outflow, but Israeli net capital outflow will decrease it will not remains unchanged.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose the U.S. economy slips into a recession. In response, the Federal Reserve cuts the federal...
Suppose the U.S. economy slips into a recession. In response, the Federal Reserve cuts the federal funds rate in order to avoid unemployment. Consider what happens to the following under a floating exchange-rate regime.      a. Domestic investment would  (Click to select)  increase  decrease  be unchanged  .      b. Capital inflow would  (Click to select)  decrease  be unchanged  increase  .      c. Capital outflow would  (Click to select)  increase  decrease  be unchanged  .      d. The exchange rate would  (Click to select)  increase  be unchanged  decrease  .      e. Net exports would  (Click to select)  increase  be unchanged  decrease  .      f. Aggregate demand would  (Click...
A decrease in accounts payable constitutes a/an _________ in net working capital and is considered a/an...
A decrease in accounts payable constitutes a/an _________ in net working capital and is considered a/an __________ to a project. Select one: a. increase; cash inflow b. increase; cash outflow c. decrease; cash inflow d. decrease; cash outflow e. increase; opportunity cost
What are the effects on a company's accounting equation when it records merchandise purchased for cash?...
What are the effects on a company's accounting equation when it records merchandise purchased for cash? A. Assets and liabilities increase B. Total assets remain unchanged C. Assets and stockholders' equity decrease D. Assets and stockholders' equity increase
1.Which of the following shifts short-run aggregate supply left ? Select one: a. an increase in...
1.Which of the following shifts short-run aggregate supply left ? Select one: a. an increase in price expectations b. a decrease in the price of oil c. an increase in the actual price level d. a decrease in the money supply 2. The short-run effects of an increase in the expected price level include Select one: a. a lower level of output and a lower price level. b.a lower level of output and a higher price level. c. a higher...
Suppose Tabatha takes $500 from her savings account and deposits it in her checking account. What...
Suppose Tabatha takes $500 from her savings account and deposits it in her checking account. What is the change in M1 and M2? a. M1 and M2 both remain unchanged b. M1 and M2 both increase c. M1 increases and M2 remains unchanged d. M1 increases and M2 decreases e. M2 increases and M1 remains unchanged
Can you explain more about Question 5? I don't understand why it is the answer. Suppose...
Can you explain more about Question 5? I don't understand why it is the answer. Suppose that more Chinese decide to vacation in the U.S. and that the Chinese purchase more U.S. Treasury bonds. Ignoring how payments are made for these purchases, Select one: a. the first action by itself raises U.S. net exports, the second action by itself raises U.S. net capital outflow. b. the first action by itself raises U.S. net exports, the second action by itself lowers...
(Tricky -- or at least hard.) Suppose we observe price and quantity both falling. What does...
(Tricky -- or at least hard.) Suppose we observe price and quantity both falling. What does that tell us about changes in demand and supply? A- Demand must have fallen and supply must have been unchanged. B- Demand must have fallen; supply may either have risen, fallen, orremained unchanged. C- Supply and demand must both have fallen. D- Supply must have fallen; demand must either have fallen or remained unchanged. If there is an increase in the overall level of...
If there is a sudden increase in the demand for money, what could the Fed do...
If there is a sudden increase in the demand for money, what could the Fed do to hold interest rates steady at their current levels? Select one: a. Cut taxes. b. Sell government securities. c. Raise the discount rate. d. Raise the required reserve ratio. e. None of the above is correct . Which of the following sequence of events follows a decrease in the discount rate? Select one: a. r↓ ⇒ I↓ ⇒ AE↓ ⇒ Y↑ b. r↑ ⇒...
1. What would be the best definition of the balance of payments? Select one: a. record...
1. What would be the best definition of the balance of payments? Select one: a. record of the value of goods and services bought and sold between countries. b. summary record of a country’s financial transactions with other countries. c. summary record of a country’s purchases and sales of goods and services on international trade markets. d. measure of the value of merchandise goods bought and sold on international trade markets. 2. The current account of Canada will reflect the...
Suppose that the rent that a firm pays on the building that it leases decreases. How...
Suppose that the rent that a firm pays on the building that it leases decreases. How would this affect this firm's marginal, average, and average variable cost curves? Select one: a. ATC decreases, but MC and AVC are unchanged. b. MC, AVC, and ATC increase. c. MC, AVC, and ATC decrease. d. ATC increases, but not MC or AVC. e. None of the above.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT