7A). Which of the following is an example of U.S. foreign direct investment? A. A Swedish car manufacturer opens a plant in Tennessee. B. A Dutch citizen buys shares of stock in a U.S. company. C. A U.S. based restaurant chain opens new restaurants in India. D. A U.S. citizen buys stock in companies located in Japan. B) The investment component of GDP (GDP =C+I+G+CX-M)) measures spending on a financial assets such as stocks and bonds. During recessions it declines by a relatively large amount. b. residential construction, business equipment, business structures, and changes in inventory. During recessions it declines by a relatively large amount. c. financial assets such as stocks and bonds. During recessions it declines by a relatively small amount. d. residential construction, business equipment, business structures, and changes in inventory. During recessions it declines by a relatively small amount. C) The aggregate-demand curve shows the a quantity of labor and other inputs that firms want to buy at each price level. b. quantity of labor and other inputs that firms want to buy at each inflation rate. c. quantity of domestically produced goods and services that households want to buy at each price level. d. quantity of domestically produced goods and services that households, firms, the government, and customers abroad want to buy at each price level. D). The model of aggregate demand and aggregate supply a is different from the model of supply and demand for a particular market, in that we cannot focus on the substitution of resources between markets to explain aggregate relationships. b. is different from the model of supply and demand for a particular market, in that we have to separate real and nominal variables in the aggregate model. c. is a straightforward extension of the model of supply and demand for a particular market, in which substitution of resources between markets is highlighted. d. is a straightforward extension of the model of supply and demand for a particular market, in which the interaction between real and nominal variables is highlighted. E) Other things the same, the aggregate quantity of goods demanded in the U.S. increases if a real wealth rises. b. the interest rate rises. c. the dollar appreciates. d. All of the above are correct.