oussnon 7 The gure above shows New Zealand's net exports (trade balance) and current account balance as percentages of New Zealand's GDP over the period 1972-2007. The evidence in the gure above suggests that, during most of the years 1970-1998, New Zealand's net international worth has . 0 increased decreased 0 remained unchanged the figure does not provide enough information to determine New Zealand's international net worth since we do not know what is happening in other countries vis-a-vis New Zealand. QUESTION I One of the advantages of using fiscal policy (such as an increase in government spending) rather than monetary policy during an economic downturn is 0 Greater government deficit spending will not affect interest rates. Increases in government spending directly impact Aggregate Demand, unlike monetary policy, which affects Aggregate Demand only indirectly, through its impact on real interest rates. Changes in scal policy are quicker to implement than changes in monetary policy. 0 Changes in monetary policy only favor people with money to begin with. Congress has a clearer notion of what is needed to steer the economy out of a recession than the members of the Federal Reserve's Federal Open Market Committee. quEsnon s "Analysts noted that consumer spending rose last quarter and the unemployment rate has fallen to historic lows. Consequently, most analysts predict at the next meeting of the Federal Open Market Committee, the Federal Reseve will short-term interest rates in an effort to economic growth and avoid ." The blanks are best filled with lower; spur; ination raise; slow; layoffs keep constant; spur; layoffs. 0 lower; spur; layoffs raise; slow; inflation