Holding all else constant, a rise in interest rates in the United ...

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Holding all else constant, a rise in interest rates in the United States will cause the dollar to appreciate in international exchange markets.
 
  Indicate whether the statement is true or false

Question 2

Suppose real GDP is 13 trillion and potential real GDP is 13.5 trillion. If Congress and the president increase government purchases by 500 billion, then the economy will be brought to equilibrium at potential real GDP.
 
  Indicate whether the statement is true or false

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Answer to Question 1

TRUE

Answer to Question 2

FALSE