What is an accurate implication resulting from an increase in ...

[mspears3]

What is an accurate implication resulting from an increase in income?
 
  A) an increase in exchange rate
  B) a decrease in exchange rate
  C) a decrease in consumption
  D) a decrease in output
  E) an increase in consumption

Question 2

Governments prefer to avoid excessive current account surpluses because
 
  A) the returns to domestic savings are more difficult to tax than those on assets abroad.
  B) an addition to the home capital stock may increase domestic unemployment and therefore lead to higher national income.
  C) foreign investment in one firm may have beneficial technological spillover effects on other foreign producers that the investing firm does not capture.
  D) an addition to the home capital stock may reduce domestic unemployment and therefore lead to higher national income.
  E) domestic savings increase with more investment abroad.

[abctaiwan]

Answer to Question 1

E

Answer to Question 2

D

[mspears3]

Excellent

[amit]

Gracias!