If unplanned investment is negative, firms will ________ production and output will ________

A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. The country is currently running a financial account surplus. The imposition of the capital controls will cause

A) net exports to decrease. B) real domestic interest rates to rise. C) real world interest rates to rise. D) desired national saving to fall.

Aggregate Demand (AD) = C + I + G + (X-M). I = ________.

A. interest rates B. industry C. investment spending