Refer to Table 26-3. Consider the hypothetical information in the ...

[nenivikky]

Refer to Table 26-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy.
 
  If the Fed uses monetary policy successfully to keep real GDP at its potential level in 2017, which of the following will be lower than if the Fed had taken no action?
  A) real GDP and the inflation rate B) real GDP and potential GDP
  C) potential GDP and the inflation rate D) real GDP and the unemployment rate

Question 2

When a U.S. investor buys a bond issued in a foreign country
 
  A) the balance on the financial account decreases. B) the balance on the capital account decreases.
  C) the balance of trade decreases. D) the balance on the current account decreases.

[stallen]

Answer to Question 1

A

Answer to Question 2

A

[nenivikky]

Correct answers!

[stallen]

Great! Please up vote