With fixed exchange rates, an increase in the foreign inflation rate, with constant income and domestic credit, will lead to

You have invested $1,000 in a stock whose price is increasing at 10 percent a year. Your stock broker, who is never wrong, recommends a stock rising at 20 percent a year. Assuming the broker earns 4 percent of the stock's value on any purchase or sale of the stock, should you take her recommendation?

To get a complete measure of the total spending on U.S.-produced final goods and services, one must adjust aggregate demand by

a. adding imports and subtracting exports. b. adding imports that are purchased by U.S. consumers. c. adding exports and subtracting imports. d. subtracting exports sold to foreigners.