The four components of the aggregate expenditures model are:
a. consumption, investment, inventories, and government purchases.
b. consumption, planned investment, unplanned changes in inventory, and exports.
c. consumption, investment, government purchases, and net exports.
d. consumption, investment, exports, and imports.
c
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A central bank with a fixed exchange rate must, in response to an interest rate decline in the anchor-currency economy, ________
A) purchase the anchor currency B) sell the anchor currency C) convene a currency board D) revalue its currency
The import of Apple iPads assembled in Shanghai at a $295 wholesale price ($213 cost and $82 profit margin) adds more than it should to the U.S. trade deficit with China because
a. Chinese assembly labor represents only 47 % of the wholesale cost b. the iPad's popularity has triggered an enormous number of unit sales c. wholesale prices only count in the trade statistics if final product prices are higher d. as with foreign-assembled minivans, most of the subassembly components come from the U.S. e. the Chinese yuan is a managed currency