IN AN OPEN ECONOMY, AGGREGATE SUPPLY CONSISTS OF DOMESTIC PRODUCTION PLUS IMPORTS. TRUE OR FALSE
INTERNATIONAL CAPITAL FLOWS TEND TO STRENGTHEN THE EFFECTS OF INTEREST RATE CHANGES ON AGGREGATE DEMAND. TRUE OR FALSE
A LARGE TAX CUT IN UNITED STATES SHOULD LEAD TO AN INCREASE IN THE TRADE DEFICIT. TRUE OR FALSE
INTERNATIONAL CAPITAL FLOWS TEND TO REDUCE THE IMPACT OF FISCAL POLICY. TRUE OR FALSE
THE U.S. TRADE DEFICIT OF THE LAT E1900S WERE DUE PRIMARLIY TO LOW SAVING RATES. TRUE OF FALSE
THE SUM OF CAPITAL INFLOWS AND THE TRADE BALANCE MUST BE ZERO. TRUE OR FALSE
