Which of the following is true?
a. In equilibrium, with only two countries, the excess demand for loanable funds in one country will equal the excess supply of loanable funds in the other.
b. Countries with net capital inflows tend to be few or no capital outflows

Capacity utilization increases. What is the impact on aggregate expenditures and income?

A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.

The primary incentive for economic agents to formulate expectations rationally is to

A) increase earnings. B) increase prices. C) reduce prices. D) ensure that all expectations are realized.