What additional sources of risk come from international investments?
What will be an ideal response?
Exchange rate risk, and political risks such as regulation, discrimination, and expropriation
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People will buy more of an inferior good when their income decreases
Indicate whether the statement is true or false
One unintended consequence of the various attempts to restrict farm acreage was that
A) output generally decreased, price increased, and farmers earned higher incomes. B) individual farmers intensified their efforts to harvest crops from the land still under cultivation. C) farmers' incomes remained constant in real terms. D) the land that was set aside became less productive.
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Mainstream macroeconomics has embraced the:
A. rational expectations view that stabilization policy is totally ineffective. B. monetarist view that the Fed should increase the money supply at a fixed annual rate. C. rational expectations view that expectations can shift the aggregate demand and aggregate supply curves. D. monetarist view that an increase in government spending crowds out an equal amount of investment spending.