1) Presume in Egypt 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 Egypt.

a. private consumption will rise.

b. private consumption will decline.

c. private consumption will remain unchanged.

d. private consumption may rise or decline.

2) Presume in Kenya 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 Kenya

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.

3) Presume in Turkey 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 Turkey

a. investment will rise.

b. investment will decline.

c. investment will remain unchanged.

d. investment may rise or decline.

4) Presume in Italy 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 Turkey

a. investment will rise.

b. investment will decline.

c. investment will remain unchanged.

d. investment may rise or decline.

5) Presume in Greece 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 Greece

a. net exports will rise.

b. net exports will decline.

c. net exports will remain unchanged.

d. net exports may rise or decline.