The scientific method refers to the process by which economists and other scientists:
A) plot graphs to illustrate relationships between different economic variables.
B) develop models of the world and test those models with data.
C) develop models to explain the past but not to predict the future.
D) collect data for further use in research.
Question 2
If the dollar appreciates and foreign goods become less expensive, the total planned expenditures on domestic goods and services will
A) increase due to the open economy effect. B) fall due to the interest rate effect.
C) fall due to the open economy effect. D) increase due to the interest rate effect.
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