All of the following components add up to the current account, except:

The above table has the demand and supply schedules for money. Real GDP increases and, as a result, the demand for money increases by $0.1 trillion at each level of the nominal interest rate. The new equilibrium interest rate is

A) 5 percent. B) 2 percent. C) 10 percent. D) 3 percent. E) 7 percent.

If the Fed lowers its target for the federal funds rate, this indicates that

A) the Fed is pursuing an expansionary monetary policy. B) the Fed is attempting to combat inflation. C) the Fed is pursuing a contractionary monetary policy. D) the Fed is concerned that the growth in aggregate demand will exceed potential GDP.