Used alone, an expenditure-reducing policy that lowers aggregate ...

[xroflmao]

Used alone, an expenditure-reducing policy that lowers aggregate demand
 
  A) will not reduce the current account deficit.
  B) is likely to cause a recession.
  C) will be likely to increase the current account deficit.
  D) is likely to increase domestic inflation.

Question 2

The Stolper-Samuelson Theorem predicts
 
  A) the level of productivity in export industries.
  B) which factors are abundant.
  C) the income distribution effects of trade.
  D) which goods will be exported.

[bdobbins]

Answer to Question 1

B

Answer to Question 2

C