Net exports of goods and services increase when
A) exports of goods and services decrease and imports of goods and services do not change.
B) consumption expenditure increases.
C) exports of goods and services increase and imports of goods and services do not change.
D) consumption expenditure decreases.
E) imports of goods and services increase and exports of goods and services do not change.
C
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Inventory investment can be:
A. zero only. B. negative, zero, or positive. C. negative only. D. positive only.
What happens when the Fed aims to change interest rates?
A) It asks Congress to legislate new interest rates. B) It buys or sells government bonds on the open market to achieve the desired rate. C) It buys or sells dollars on the foreign exchange market to achieve the desired rate. D) It announces a new discount interest rate.