The United States first became a creditor nation in the year _______.

An increase in the budget surplus

a. raises net exports and domestic investment. b. raises net exports and reduces domestic investment. c. reduces net exports and raises domestic investment. d. reduces net exports and domestic investment.

As the wage rate rises, firms will respond by

A. selling more output to cover the additional costs of the labor force. B. hiring fewer workers because the labor demand curve slopes downward. C. selling the same amount of output, but passing on the higher labor costs to the customer. D. hiring more workers because a higher wage rate will make workers work harder.