A production possibilities frontier is a graph that shows the combination of outputs that an economy should produce

According to the classical model, both prices and nominal income would double if the quantity of money

a) doubled. b) remained constant. c) tripled. d) halved.

If foreigners spend more on U.S.-made goods and services than we spend on theirs

A) foreigners must borrow from the United States or sell U.S. assets to make up the difference. B) all U.S. national saving remains in the United States. C) we must borrow from foreigners because of low imports. D) funds flow in from abroad to help finance U.S. investment.