In the open-economy Keynesian model, it always has to be true that
a. planned savings equals planned investment.
b. planned savings is greater than planned investment.
c. planned savings is less than planned investment.
d. none of the above.
D
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Based on the figure below, an economy in short-run equilibrium at point A has a(n) ________ gap. The gap could be eliminated by the self-correcting mechanism of the economy and eventually achieve long-run equilibrium at point ________ or the central bank could intervene with monetary easing and the long-run equilibrium would be at point ________. 
A. expansionary; C; B B. recessionary; B; C C. expansionary; B; C D. recessionary; C; B
The labor supply curve will shift to the right under which of the following conditions?
a. other things being equal, workers are willing to supply more hours of labor each week b. new workers enter the labor market c. a new law relaxes immigration quotas d. all of the above
When the U.S. interest rate differential ________, the demand for dollars ________ and the demand curve for dollars shifts rightward
A) rises; does not change B) rises; decreases C) falls; increases D) rises; increases E) falls; decreases
Consumption expenditure is the payment by households for consumption of
A) goods but not services. B) services but not goods. C) goods and services. D) services and for saving.