The nominal interest rate is approximately equal to the real interest rate minus the inflation rate

If people decide that some country is now a more risky place to keep their saving, then at the original interest rate in that country there is a

a. surplus of loanable funds, so the interest rate increases. b. surplus of loanable funds, so the interest rate decreases. c. shortage of loanable funds, so the interest rate increases. d. shortage of loanable funds, so the interest rate decreases.

Other things equal, an increase in an economy's exports will:

A. lower the marginal propensity to import. B. have no effect on domestic GDP because imports will change by an offsetting amount. C. decrease its domestic aggregate expenditures and therefore decrease its equilibrium GDP. D. increase its domestic aggregate expenditures and therefore increase its equilibrium GDP.