COMPETITION MONOPOLY OLIGOPOLY
TEST BANK 2026
◉ inversions are rare, but what do they signal
Answer: meaningful signal to show that something might be
recessing, not causation just correlation
◉ open economy
Answer: money can move freely across borders
◉ capital outflow
Answer: when domestic savings are invested in a dif country
◉ capital inflow
Answer: when foreign savings finance domestic investement
◉ net capital flow
Answer: capital outflow - capital inflow
◉ net cap inflow
, Answer: investment > national savings
◉ net cap outflow
Answer: national > domestic investment
◉ diversify risk
Answer: spreading eggs in multiple baskets
◉ provide liquidity
Answer: easier to have access to cash
◉ intermediary btween savers and borrowers
Answer: bank / middleman
◉ when economy experiences on going slow economic growth
Answer: equilibrium ir goes downs, quantity saved goes up
◉ the government redcues # of weeks someone is eligible for
Answer: equ ir goes down, quantity of saved goes up
◉ arbitrage
Answer: seeking cheaper outside of market