The perfectly competitive firm's demand curve has

The change in U.S. official reserves is equal to

A) borrowing from abroad plus the current account deficit. B) the current account balance plus the capital and financial account balance. C) the current account balance minus the capital and financial account balance. D) foreign investment in the United States minus U.S. investment abroad.

When the Treasury borrows from the non-bank public and makes an expenditure of an equal amount, the money supply

A) rises by a multiple of the expenditure. B) rises by an amount equal to the expenditure. C) rises by an amount less than the expenditure. D) is unaffected.