The aggregate demand curve is

What two groups of decision makers are represented in the basic circular flow model?

A) governments and financial institutions B) lenders and borrowers C) wholesalers and retailers D) bankers and regulators E) households and firms

To encourage more investment, Mexico has lowered its tax rates to reduce the user cost of capital. Argentina is unable to pay back its foreign debts, causing its expected future marginal product of capital to fall

Mexico's real exchange rate will ________ and its net exports will ________. A) depreciate; fall B) appreciate; rise C) depreciate; rise D) appreciate; fall