Without targeting the deficit, which of the following is likely to occur after a negative aggregate demand shock?

According to the saving and investment equation, if net foreign investment falls by $35 million

A) national saving in excess of domestic investment will rise by $35 million. B) national savings will rise by $35 million. C) domestic investment will fall by $35 million. D) national saving in excess of domestic investment will decrease by $35 million.

For a risk-neutral person, the expected utility associated with various levels of wealth

A) is above the person's utility function. B) is below the person's utility function. C) is equal to the person's utility function. D) does not exist.