Income on the horizontal axis at which the vertical distance to the 45-degree line is greater than the vertical distance to the Ep line gives rise to ________-than-equal planned expenditures, and so we must be ________ the equilibrium level of income

Investment occurs when:

a. firms are very profitable and have lots of extra cash on hand. b. there is a reduction in risk-aversion. c. the expected real interest rate is less than the expected real return on the investment project. d. individuals realize that there are greater long-term gains in the equity and credit markets.

Which statement is true?

A. Since 2007, the U.S. trade deficit has fallen significantly. B. Net exports has always been negative. C. The U.S. exports more services than merchandise (in terms of dollars). D. The U.S. balance of trade was negative for most of the 20th century.