Information that returns to the system is known as:

According to the BEA, in the second quarter of 2012 state and local government spending on goods and services changed by -1.4 percent. Using the expenditure approach, this change leads to

A) a decrease in government expenditure on goods and services. B) no change in GDP because only federal government expenditures are included in GDP. C) a decrease in gross private domestic investment. D) no change in GDP because state and local government expenditure is always canceled out by federal government expenditure.

Refer to Figure 19-10. Under the Bretton Woods System of exchange rates, if the par exchange rate was $2 per pound in the figure above, and equilibrium persisted at $3, then a revaluation of the currency would have

A) led to a balance of trade surplus. B) increased the price of imports to Britain. C) led to a current account surplus. D) increased the price of British exports to the United States.