Which of the following is correct? When expected leakages exceed ...

[MirandaLo]

Which of the following is correct? When expected leakages exceed expected injections, then:
 a. Inventories rise, unemployment tends to rise, and prices tend to fall.
  b. Inventories rise, unemployment tends to fall, and prices tend to rise.
  c. Inventories fall, unemployment tends to rise, and prices tend to rise.
  d. It is impossible for these two to be unequal.
  e. The nation's economy expands.

Question 2

Which of the following is not included as net income in the U.S. balance of payments?
 a. Income paid by a U.S. company to foreign consultants.
  b. Profits earned by U.S. companies from foreign operations.
  c. Foreign dividends received by U.S. residents.
  d. Profits earned by U.S. companies from foreign operations and reinvested abroad.
  e. All the above are includedas net income in the U.S. balance of payments.

[peter]

Answer to Question 1

.A

Answer to Question 2

.E

[MirandaLo]

Thanks for the timely response, appreciate it

[chereeb]

TYSM