A decrease in U.S. federal government budget deficits that lowers ...

[neverstopbelieb]

A decrease in U.S. federal government budget deficits that lowers U.S. interest rates relative to the rest of the world should
 
  A) decrease net exports.
  B) increase foreign portfolio investment.
  C) lead to a current account surplus.
  D) lower the trade balance.
  E) cause the dollar to appreciate.

Question 2

Potential GDP is the value of real GDP when ______.
 
  A. the unemployment rate equals the natural unemployment rate
  B. there is no frictional unemployment
  C. there is no structural unemployment
  D. the unemployment rate is zero

[kkenney]

Answer to Question 1

B

Answer to Question 2

A When real GDP equals potential GDP, the unemployment rate equals the natural unemployment rate.

[neverstopbelieb]

Wow, this really help

[rachel]

YES! Correct, THANKS for helping me on my review