________ usually increase(s) when the U.S. economy is in a recession and decrease(s) when the U.S. economy is expanding.
a. Consumer spending
b. Planned investment
c. Net Exports
d. Unplanned investment
c. Net Exports
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen asĀ
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
From the early 1990s through 2012, the U.S
A) current account and U.S. capital and financial account were both positive. B) current account was negative. C) balance of payments exceeded the capital account. D) actual balance of payments deficit exceeded what the United States measured as the balance of payments deficit. E) capital and financial account was negative.
Assuming the free flow of capital across borders, explain why a country that has a fixed exchange rate cannot have an independent monetary policy reaction curve.
What will be an ideal response?
The Federal Reserve System
What will be an ideal response?