Suppose investors become more optimistic that the economy will be doing well over the next decade. How will the market for loanable funds as depicted in the accompanying graph be affected?

"Non-market-clearing" approaches to macroeconomics include

A) the original Keynesian model, but not the New Keynesian model. B) the New Keynesian model, but not the original Keynesian model. C) the original and New Keynesian models. D) neither the original nor the new Keynesian models.

A summary of a country's economic transactions with foreign residents and governments is called the

A) current account balance. B) capital account balance. C) balance of trade. D) balance of payments.