Suppose that the U.S. personal income tax was eliminated and replaced with a fixed tax that raised the exact same amount of revenue. The multiplier would be

The government sector balance is equal to net taxes ________ government expenditure on goods and services

If that number is ________, a government sector surplus is lent to other sectors; if that number is ________, borrowing from other sectors must finance a government deficit. A) plus; positive; negative B) minus; negative; positive C) minus; negative; negative D) minus; positive; positive E) minus; positive; negative

Assume that the nominal exchange rate increases by 2%. If prices (both domestic and foreign do not change), we know that

A) domestic goods are now relatively cheaper. B) domestic goods are now relatively more expensive. C) foreign goods are now relatively cheaper. D) both B and C