In an open economy under flexible exchange rates and represented ...

[aabwk4]

In an open economy under flexible exchange rates and represented by the IS-LM-IP model, a reduction in government spending will cause a reduction in which of the following?
 
  A) net exports
  B) the exchange rate, E
  C) exports
  D) all of the above
  E) none of the above

Question 2

When using a logarithmic scale to plot output per capita over time, an upward-sloping curve that becomes increasingly steep indicates
 
  A) output per capita is not changing.
  B) output per capita is growing by a constant amount each year.
  C) output per capita is growing by a constant percentage each year.
  D) output per capita is growing by an increasing percentage each year.
  E) output per capita is not defined.

[laurnthompson]

Answer to Question 1

C

Answer to Question 2

D

[aabwk4]

TYSM

[mcarey591]

Excellent