1)When two large open economies are in equilibrium, which of the following equals net savings (Sd-Id)? A) The price level B) Imports C) Net Exports D) Exports

2)Which of the following is not an example of Fiscal Policy? A) An increase in spending on national defense B) A change in the level of the money supply by the Federal Reserve Bank C) A decrease in spending for national parks D) An increase in the federal income tax rate

3)Assuming we start from full employment (general equilibrium), which of the following is correct concerning the difference in the long-run response of the economy to expansionary monetary and expansionary fiscal policy? A) Expansionary monetary policy will cause an increase in the price level, and expansionary fiscal policy will cause a decrease in the price level B) Expansionary fiscal policy will cause an increase in the price level, and expansionary monetary policy will cause a decrease in the price level C) Expansionary monetary policy will cause an increase in the level of real interest rates; expansionary fiscal policy will not increase the level of real interest rates. D) Expansionary fiscal policy will cause an increase in the level of real interest rates; expansionary monetary policy will not increase the level of real interest rates.

4)Which of the following records the international trade in goods and services? A) The Capital Account B) The Trust Fund C) The Current Account D) The Federal Reserve Account

5)Which of the following categories of government outlays will decline as a percentage of GDP over the next 30 years? A) Discretionary spending, such as on education and national parks B) The amount paid in net interest on the national debt C) Spending on Medicare and Medicaid D) The amount paid for social security benefits

6)Following an increase in government spending in the domestic economy in the model with two large open economies, which of the following will result? A) The price level will decrease in both economies B) There will be a decrease in the price level of the domestic economy and an increase in the price level of the foreign economy C) There will be an increase in the price level of both economies D) There will be an increase in the price level of the domestic economy and a decrease in the price level of the foreign economy