Someone in Mexico has just ordered a U.S.-made automobile to be exported to Mexico. In the U.S. balance of payments, this purchase is a(n)

In response to the financial crisis in 2008, the Fed created which of the following policy tools?

A) quantitative easing B) the required reserve ratio C) the discount rate D) the federal funds rate E) open market operations

When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline