The forces that make market economies work are

Studies of NAFTA have concluded that free trade caused ______ in the variety of U.S. imports from Mexico.

a. decreases b. increases c. no change d. slight decreases

Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and net nonreserve international borrowing/investing in the context of the

Three-Sector-Model? a. The quantity of real loanable funds per time period falls and net nonreserve international borrowing/investing becomes more negative (or less positive). b. The quantity of real loanable funds per time period rises and net nonreserve international borrowing/investing becomes more negative (or less positive). c. The quantity of real loanable funds per time period falls and net nonreserve international borrowing/investing becomes more positive (or less negative). d. The quantity of real loanable funds per time period and net nonreserve international borrowing/investing remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.