An increase in the sensitivity of private spending (consumption, ...

[pane00]

An increase in the sensitivity of private spending (consumption, investment, and net exports) to changes in the interest rate ________ the government purchases multiplier.
 
  A) may increase or may decrease B) will not change
  C) will increase D) will decrease

Question 2

If net exports are positive
 
  A) net foreign investment is also positive.
  B) net foreign investment is negative.
  C) capital inflows must be greater than capital outflows.
  D) Both A and B are correct.

[mmpiza]

Answer to Question 1

D

Answer to Question 2

A

[pane00]

Excellent

[xthemafja]

Gracias!