The U.S. buys $500 billion of goods and $250 billion of services from foreign countries. Foreign countries buy $250 billion of goods and $300 billion of services from the U.S. What is net exports?

The CPI was 170 last year and is 190 this year. What is the inflation rate between these two years?

A) 20 percent B) 11.8 percent C) 18 percent D) 15.0 percent E) 10.5 percent

In 2005 and 2006, because of fears of inflation, the Fed:

a. increased interest rates which lead to higher monthly payments on fixed rate mortgages b. increased interest rates which lead to higher monthly payments on adjustable rate mortgages. c. decreased interest rates which lead to higher monthly payments on fixed rate mortgages. d. decreased interest rates which lead to higher monthly payments on adjustable rate mortgages.