In the table shown above, the total cost of the market basket in 2010 was

If government expenditures on goods and services increases by $20 billion, then aggregate demand

A) increases by $20 billion. B) increases by more than $20 billion. C) decreases by $20 billion. D) increases by less than $20 billion. E) decreases by more than $20 billion.

An increase in a country's rate of inflation is apt to

A) reduce its imports and improve its trade balance. B) lower its nominal rate of interest and encourage an inflow of capital. C) worsen its balance of trade and balance of payments. D) decrease demand for the country's currency.