The federal budget deficit has been over 30 percent of GDP since the early 1980s

If the domestic dollar return (home nominal interest rate) is 5%, and the foreign nominal interest rate is 3%, and there is no expected change in future exchange rates, then as the spot exchange rate depreciates:

a. the foreign return rises. b. the foreign return falls. c. the domestic return rises. d. the domestic return falls.

In Figure 3-6 above, at point J

A) there is unplanned inventory investment. B) there is unplanned inventory disinvestment. C) there is no change in inventory levels. D) intended and unintended inventory investment are equal.