The theory of the relationship between balance of payment and exchange rates that deals with the size of a nation's expenditures is called

If the expansion of a country's exports leads to growth in non-export industries this is called a(n)

A) secondary effect. B) linkage effect. C) elementary effect. D) None of the above.

The effects of financial deregulation on the IS and LM curves ________ the volatility of interest rates as the curves shift, such as the change in the amount that the interest rate must ________ when the Fed conducts open market purchases

A) decrease, rise B) decrease, fall C) increase, rise D) increase, fall