Author Question: Following a decrease in government spending, as the price level falls we would expect the level of ... (Read 95 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
Following a decrease in government spending, as the price level falls we would expect the level of interest rates to ________ and investment to ________.
 
  A) decrease; increase B) increase; decrease C) decrease; decrease D) increase; increase

Question 2

If the United States has a net export deficit, which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)
 
  A) Net foreign investment must be negative as well.
  B) Domestic private saving must be less than net foreign investment.
  C) Domestic public saving must be less than net foreign investment.
  D) The balance on the financial account must equal the balance on the current account.



lolol

  • Sr. Member
  • ****
  • Posts: 330
Answer to Question 1

A

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

For a complete list of videos, visit our video library