1 - If the real exchange rate in the United States is below the equilibrium level, _____.

1 - If the real exchange rate in the United States is below the equilibrium level, _____.

--the demand for dollars by foreigners will balance the supply of dollars from Americans

--there will be a shortage of dollars

--​the quantity of dollars supplied will exceed the quantity of dollars demanded

--the value of dollar will fall

2 - A decrease in the tax rates in an economy will cause a:

--rightward shift of the aggregate demand curve if the crowding-out effect is equal to the size of the tax multiplier.

--​leftward shift of the aggregate demand curve if the crowding-out effect is smaller than the size of the tax multiplier.

--​rightward shift of the aggregate demand curve if the crowding-out effect is larger than the size of the tax multiplier.

--leftward shift of the aggregate demand curve if the crowding-out effect is larger than the size of the tax multiplier.