The U.S. trade deficit is made possible, in part, because of foreigners' demand for U.S. financial assets

A fall in the price of bonds may lead to a(n):

A) decrease in aggregate demand and the price level due to a decrease in net exports. B) decrease in aggregate demand and an increase in the price level due to a decrease in investment. C) increase in aggregate demand due to an increase in net exports. D) increase in aggregate demand due to an increase in investment.

If wages and prices are flexible, an anticipated change in the money supply has no effect on

A) money demand. B) nominal interest rates. C) real GDP. D) the inflation rate.