An automatic stabilizer tends to increase GDP when it is rising.

If expansionary fiscal policies in theUS lead to increased budget deficits what will happen to real interest rates in the US and the value of the dollar?

a. increase; increase b. increase; decrease c. no change; decrease d. decrease; increase e. decrease; decrease

If the average cost of producing a good is increasing as a firm produces more of the good, then which of the following must be TRUE?

A) AFC is falling. B) AVC is rising. C) MC > AVC. D) All of the above.