If the Fed buys government securities, other things the same, the exchange rate ________ and U.S. exports ________

Refer to Figure 13-1. Ceteris paribus, an increase in households' expectations of their future income would be represented by a movement from

A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.

If the United States donates footballs to Japan, how is the transaction recorded on the U.S. balance of payments accounts?

A) Decline in merchandise trade; increase in financial account B) Decline in financial account; increase in merchandise trade C) Decline in net unilateral transfers; increase in merchandise trade D) Decline in merchandise trade; increase in net unilateral transfers