Which of these variables remains exogenous throughout Chapter 3?

The balance of payments ____

a. b and e b. is always zero c. with some nations is different than it is with others d. is negative when the nation runs a trade deficit e. can only be expanded when the government has foreign exchange reserves

According to the short-run Phillips curve, inflation

a. and unemployment would fall if the policymakers decreased the money supply. b. would fall and unemployment would rise if policymakers decreased the money supply. c. and unemployment would fall if the policymakers increased the money supply. d. would fall and unemployment would rise if policymakers increased the money supply.