A decrease in the demand for U.S. exports ________ the demand for ...

[dollx]

A decrease in the demand for U.S. exports ________ the demand for U.S. dollars and shifts the demand curve for U.S. dollars ________.
 
  A) increases; rightward
  B) decreases; rightward
  C) decreases; leftward
  D) increases; leftward

Question 2

What is the relationship between gross investment, net investment, and depreciation? Which measures the change in the capital stock?
 
  What will be an ideal response?

[angrybirds13579]

Answer to Question 1

C

Answer to Question 2

Gross investment minus depreciation equals net investment. Gross investment is all the investment made during the year. Depreciation is the wear and tear on capital from its use and obsolescence. The depreciation part of gross investment goes to replace old, worn out capital and so net investment is the change in the capital stock.