1.

a) Suppose in Ghana this year the real income, price level, interest rate, exchange rate, net taxes, conditions in the rest of the world, and expectations of future trends in the economy are given for households. If in this situation household wealth increases, this year in Ghana

a.private saving out of current income will rise.

b.private saving out of current income will decline.

c.private saving out of current income will remain unchanged.

d.private saving out of current income may rise or decline.

b)Suppose in Pakistan this year the real income, price level, exchange rate, net taxes, conditions in the rest of the world, and expectations of future trends in the economy are given for households and firms. If in this situation the interest rate increases, this year in Pakistan

a.investment will rise.

b.investment will decline.

c.investment will remain unchanged.

d.investment may rise or decline.

c) Suppose in Bangladesh this year the price level, interest rate, exchange rate, net taxes, conditions in the rest of the world, and expectations of future trends in the economy are given for households and firms. If in this situation current real income temporarily increases, this year in Bangladesh

a.investment will rise.

b.investment will decline.

c.investment will remain unchanged.

d.investment may rise or decline.

d) Suppose in Taiwan this year the real income, price level, interest rate, exchange rate, net taxes, conditions in the rest of the world, and expectations of future trends in the economy are given for households and firms. If in this situation the real income in the rest of the world increases, this year in Taiwan

a.net exports will rise.

b.net exports will decline.

c.net exports will remain unchanged.

d.net exports may rise or decline.