1: A depreciation of the domestic currency, and other things being equal, causes the net export (NX) to shift _ _ _ _ and _ _ _ _.

A: downward; become flatter

B: upward; become flatter

C: downward; keep the same slope

D: upward; become steeper

E: downward; become steeper

2: Other things being equal, if autonomous spending increases the aggregate expenditure (AE) function shifts

A: upward and the AD curve will shift to the right.

B: downward and the economy will move up along the AD curve.

C: downward and the AD curve will shift to the left.

D: upward and the economy will move down along the AD curve.

E: upward and the economy will move up along the AD curve.

3: Suppose the government responds to macroeconomic events by decreasing the net tax rate on national income. Assuming that aggregate output is demand determined, what effect will this have, all other things equal, on the capital AE function and on equilibrium national income?

A: The AE function will shift up parallel to itself and equilibrium national income will rise.

B: The AE function will shift down parallel to itself and equilibrium national income will fall.

C: there will be no change in the AE function or an equilibrium national income.

D: The AE function will rotate downward (become flatter) and national income will fall.

E: The AE function will rotate upward (become steeper) and equilibrium national income will rise.