Author Question: Other things being equal, an increase in U.S. interest rates would be likely to cause an increase in ... (Read 38 times)

imanialler · **on:** Jun 30, 2018

Other things being equal, an increase in U.S. interest rates would be likely to cause an increase in the capital account surplus or a decrease in the capital account deficit.
a. True
b. False
Indicate whether the statement is true or false

Question 2

In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
a. inventory is depleted.
b. inventory is accumulated.
c. inventory is unchanged.
d. employment decreases.