Higher interest rates in the United States will attract foreigners to U.S interest-earning assets. This
A) decreases U.S. net exports.
B) increases U.S. net exports.
C) decreases U.S. imports.
D) will have no effect on net exports.
Ans: A) decreases U.S. net exports.
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A) "what" B) "how" C) "for whom" D) "where"
The various studies of the size of the fiscal multiplier by different economists suggest
A) general agreement that the fiscal multiplier value is relatively high. B) general agreement that the fiscal multiplier value has a range between 0.8 and 1.2. C) general agreement that the fiscal multiplier value is zero. D) there is a wide range of opinion on the size of the fiscal multiplier.