Author Question: During the start of an expansion, aggregate planned expenditure A) exceeds real GDP. B) ... (Read 87 times)

Lisaclaire · **on:** Jun 29, 2018

During the start of an expansion, aggregate planned expenditure

A) exceeds real GDP.
B) decreases the magnitude of the expenditure multiplier.
C) increases the magnitude of the expenditure multiplier.
D) is slowly decreasing.
E) is less than real GDP.

Question 2

Suppose the United States is experiencing a balance of payments surplus. To prevent the exchange rate from appreciating, the U.S. Treasury must

A) sell dollars and buy foreign currency. B) sell both dollars and foreign currency.
C) buy both dollars and foreign currency. D) sell foreign currency and buy dollars.