Refer to the accompanying figure. The total utility of consuming 4 pizzas a week is:

How does the aggregate demand curve reflect an increase in aggregate demand?

What will be an ideal response?

Suppose China decides to sell a vast majority of their large holdings of U.S. Treasury bonds. If you are thinking of refinancing your house, how would China's action affect your decision to refinance?

A) You would want to wait to refinance as interest rates should rise. B) China's actions should not affect your decision to refinance in any way. C) You would want to refinance as soon as possible as interest rates should rise. D) You would want to wait to refinance as interest rates should fall.