residents purchase
residents purchase, If U.S. residents purchase $500 billion of foreign assets and foreigners purchase $1300 billion of U.S. assets,(Points : 2) U.S. net capital outflow is $800 billion; capital is flowing into the U.S. U.S. net capital outflow is $800 billion; capital is flowing out of the U.S. U.S. net capital outflow is -$800 billion; capital is flowing into the U.S. U.S. net capital outflow is -$800 billion; capital is flowing out of the U.S. Question 11. 11. Suppose stock prices rise. To offset the resulting change in output the Federal Reserve could(Points : 2) increase the money supply. This increase would also move the price level closer to its value before the rise in stock prices. increase the money supply. However, this increase would move the price level farther from its value before the rise in stock prices. decrease the money supply. This decrease would also move the price level closer to its value before the rise in stock prices. decrease the money supply. However, this decrease would move the price level farther from its value before the rise in stock prices. Question 12. 12. Suppose investment spending falls. To offset the change in output the Federal Reserve could(Points : 2) increase the money supply. This increase would also move the price level closer to its value before the decline in investment spending. increase the money supply. However, this increase would move the price level farther from its value before the decline in investment spending. decrease the money supply. This decrease would also move the price level closer to its value before the decline in investment spending. decrease the money supply. However, this increase would move the price level farther from its value before the decline in investment spending. Question 18. 18. Supporters of using government expenditures to respond to recession(Points : 2) argue that monetary policy should be used first. An increase in the money supply will reduce interest rates. argue that monetary policy should be used first. An increase in the money supply will raise interest rates. argue that monetary policy should be used only after fiscal policy has been used. An increase in the money supply will reduce interest rates. argue that monetary policy should be used only after fiscal policy has been used. An increase in the money supply will raise interest rates. .
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