If countries that imported goods and services from the United States recovered from recession, we would expect that U.S. net exports would
a) fall, making aggregate-demand curve shift to the right.
b) rise, making aggregate-demand curve shift to the left.
c) rise, making aggregate-demand curve shift to the right.
d) fall, making aggregate-demand curve shift to the left.
Ans: c) rise, making aggregate-demand curve shift to the right.
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If foreign holdings of U.S. dollars increase, holding all else constant
A) the balance on the U.S. financial account will increase. B) the balance on the U.S. current account will increase. C) the U.S. balance of trade will increase. D) the balance on the U.S. capital account will increase.
If Matt's disposable income increases from $4,000 to $4,500 and his level of saving increases from $200 to $325, it may be concluded that his marginal propensity to:
A. Consume is .80 B. Consume is .75 C. Consume is .60 D. Save is .30