Most goods whose purchases are included in the investment component of GDP are used to produce other goods in future periods

Fiscal policy aims to influence the overall health of the economy through changes in:

a. the money supply. b. government spending and tax rates. c. interest rates. d. international exchange rates. e. All of the above.

If the risk of buying U.S. assets rises because it is discovered that lending institutions had not carefully evaluated borrowers prior to lending them funds, then

a. the real exchange rate and the interest rate will rise. b. the real exchange rate will rise and the interest rate will fall. c. the real exchange rate will fall and the interest rate will rise. d. the real exchange rate and the interest rate will fall.