The inside lags for monetary policy are relatively long compared to those for fiscal policy

Refer to Figure 19-1. Which of the following would cause the change depicted in the figure above?

A) European productivity rises relative to American productivity. B) The U.S. removes a quota on wristwatches from the European Union. C) Americans increase their preferences for goods produced in the EU relative to American goods. D) The price level of goods produced in the EU increases relative to the price level of goods produced in the United States.

The household saving rate as measured by the Flow of Funds Accounts does NOT include

A) capital gains on stocks, bonds, houses, and other assets. B) net investment in consumer durables. C) household accumulations in government pensions. D) All of the above.