Econ macroeconomics homework multiple choice

QUESTION 8 Greater reliance on foreign saving to finance purchases of new plant and equipment by US firms is beneficial because O the US will be richer; foreigners will be poorer. but it has a downside in that O US consumers can consume more rather than save; it will result in lower wages for US workers. the US government can run a larger budget deficit; US firms will relocate to other countries. O the US will export more; US workers will lose jobs. O US productivity will increase because of the larger physical capital stock; foreigners will have a larger claim on US GDP. QUESTION 9 "The union economist is just plain wrong," argued the business economist. "More international trade has a positive effect on the economy - output will rise and prices fall. What more can you ask?" The business economist's statement suggests that she O believes more international trade will lower the average cost of intermediate goods used to produce final goods. O believes more international trade will decrease the government's deficit. O believes more people will come to work in the US. O ignores the fact that overall unemployment will ultimately rise as a result of greater international trade. O believes more international trade will increase exports