The sum of the components of aggregate expenditure that are not influenced by real gdp is called?
A) autonomous consumption.
B) the MPC.
C) autonomous expenditures.
D) induced expenditures.
Ans: C) autonomous expenditures.
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Under a system of flexible exchange rates, transactions that increase the supply of the nation's currency to the foreign exchange market will cause the nation's
a. currency to depreciate in value. b. currency to appreciate in value. c. trade deficit to increase. d. products to become more expensive to foreigners.
If policymakers impose import restrictions on clothing, the U.S. trade deficit will shrink
a. True b. False Indicate whether the statement is true or false
The reserve requirement is the tool used least frequently by the Fed because it can cause abrupt changes in the money supply.
a. true b. false
The capital account balance equals
A. Foreign purchases of U.S. assets plus U.S. purchases of foreign assets. B. The negative of the current account balance. C. The current account balance minus imports. D. The balance of payments plus the sum of the merchandise balance, the services balance, and unilateral transfers.