In the figure above, if real GDP is 10 trillion, aggregate planned expenditure is
A) equal to 10 trillion and there are no unplanned inventory changes.
B) less than 10 trillion and unplanned inventory changes are positive.
C) equal to 10 trillion and unplanned inventory changes are negative.
D) more than 10 trillion and unplanned inventory changes are negative.
E) equal to 10 trillion and unplanned inventory changes are positive.
Question 2
If the interest rate rises in the United States relative to other nations, then in the foreign exchange market the demand for dollars ________ and the supply of dollars ________.
A) does not change; does not change
B) increases; increases
C) increases; decreases
D) decreases; decreases
E) decreases; increases
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