If the US is growing faster than the rest of the world, then all else constant, the trade deficit will widen (get more negative assuming we were running a trade deficit to begin with).
Question 36If the inflation rate rises in China so that it exceeds that of the US, then net exports for the US should increase, all else constant.
Question 37If the exchange rate between the US dollar and Japanese yen changes from $1 = 100 yen to $1 = 120 yen, then US exports to Japan will become more expensive to Japanese importers.
Question 38We argued that cash flow (CF) increased during the Great Recession and thus, had a positive effect on investment.
Question 39In a consumption function with income (Y) on the horizontal axis and consumption (C) on the vertical axis, a rise in stock market wealth, all else constant, will result in a movement along the consumption function.
Question 40The weaker the US dollar is relative to the rest of the world, all else constant, the larger the net exports in the US.
Question 41A fall in the tax rate on capital will cause the aggregate expenditure curve to shift up and the aggregate demand curve to shift to the left, all else constant.