I need these questions answered and some accompanying charts depending on the question. Thanks!

I need these questions answered and some accompanying charts depending on the question. Thanks!


29035169 Montgomery College ECON 201-35024 Spring 2024 Assignment 2 Each question carries an equal point. Total mark: 7 Due Date: 04/13/2024 at 11:59 PM 1. Which of the following will contribute to lowering the U.S. current account balance? a. Mexico imports services from U.S. b. Mexico exports goods to the U.S. c. Foreign investors in U.S. send return from their financial investment in the U.S. to their home country. d. U.S. imports from Japan 2. Imagine that the U.S. economy finds itself in the following situation: a government budget deficit of $100 billion, total domestic savings of $1,500 billion, and total domestic physical capital investment of $1,600 billion. According to the national saving and investment identity, what will be the current account balance? 3. From the above problem, what will be the current account balance if investment rises by $50 billion, while the budget deficit and national savings remain the same? 4. Suppose Mexico, one of our largest trading partners and purchaser of a large quantity of our exports, goes into a recession. Use the AD/AS model to determine the likely impact on our equilibrium GDP and price level. 5. A policymaker claims that tax cuts led the economy out of a recession. Use the AD/AS diagram to show this. 6. Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What impact would that have on GDP, unemployment, and inflation? 7. Which one of the following would not shift the aggregate demand curve? a. A change in the price level b. Depreciation of the international value of the dollar c. A decline in the interest rate at each possible price level d. An increase in personal income tax rates use the following scenarios to answer the ques2ons 8-10. a. A large increase in the price of the homes people own. b. Rapid growth in the economy of a major trading partner. c. The development of a major new technology offers profitable opportunities for business. d. The interest rate rises. e. The good imported from a major trading partner become much less expensive. 8. In the Keynesian framework, which of the above events might cause a recession? 9. In the Keynesian framework, which of the above events might cause inflation? 10. Sketch AD/AS diagrams to illustrate your answer when the interest rate rises (option d).