Capital investment becomes more profitable for a business firm as the real interest rate decreases

Apply the AD/AS model to the U.S. economy. The international trade effect is reflected on its _______ and when the price level _________________

a. AS; falls, foreigners buy fewer goods b. AD; falls, foreigners buy more U.S. goods c. AS; falls, the aggregate demand curve shifts to the left d. AS; rises, the aggregate demand curve shifts to the right e. AS; rises, the supply of U.S.-made goods increases

The basic idea behind the 1996 changes in the welfare program was to

a. eliminate poverty in the United States b. eliminate the idea that welfare was an entitlement c. create a new class of workers in the United States d. eliminate the food stamp program e. provide the poor with jobs