A decrease in the demand for American-made goods will A) ...

[JMatthes]

A decrease in the demand for American-made goods will
 
  A) increase the supply of dollars in the foreign exchange market.
  B) decrease the supply of dollars in the foreign exchange market.
  C) decrease the demand for dollars in the foreign exchange market.
  D) increase the demand for dollars in the foreign exchange market.

Question 2

A cut in tax rates effects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and ________ the size of the multiplier effect.
 
  A) increasing; increasing B) decreasing; decreasing
  C) decreasing; increasing D) increasing; decreasing

[recede]

Answer to Question 1

C

Answer to Question 2

A

[JMatthes]

YES! Correct, THANKS for helping me on my review

[shailee]

Wow, this really help