1.An expansionary fiscal policy will increase interest rates unless which of the following occurs?

a. Taxes are cut instead of government expenditures increased

b. The money supply is increased

c. Wage and price controls are imposed

d. The exchange rate is fixed

e. The Fed sells government bonds

2.The capital account on the United States' balance of payments includes all but which of the following transactions?

a. Changes in ownership of foreign stocks

b. The sale of U.S. automobiles to German consumers

c. Foreign investors construct a factory on U.S. soil

d. The purchase of U.S. bonds by a foreign government

e. A U.S. firm buys property in a foreign country

3.Which of the following transactions would be included as a credit on Japan's current account?

a. American citizens purchase Japanese-made automobiles

b. Japanese land is sold to Australian citizens

c. European citizens earn interest on Japanese government bonds

d. The Japanese government purchases American Treasury securities.

e. A Japanese firm builds a factory in the U.S.