Because exports are less than imports,
a. net exports are positive.
b. net exports are a positive percentage of GDP.
c. net exports are a negative percentage of GDP.
d. the federal government has a budget surplus.
c. net exports are a negative percentage of GDP.
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Refer to Figure 11.5. An increase in the marginal propensity to import is best illustrated by diagram
A) A. B) B. C) C. D) D.
Which of the following statements is FALSE?
A) Both monetary and interest rate targets cannot be pursued simultaneously. B) A reduction in the required reserve ratio increases the money supply and pushes down the equilibrium interest rate. C) An open market sale decreases the money supply and pushes up the equilibrium interest rate. D) An open market purchase reduces the money supply and pushes down the equilibrium interest rate.