Assuming no change in the effective tax rate on capital, an increase in the government budget deficit will reduce the current account deficit if and only if the increase in the budget deficit
A) reduces desired national saving.
B) increases desired national saving.
C) reduces desired national investment.
D) increases desired national investment.
A
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How are the nominal and real demands for money related to changes in the price level?
What will be an ideal response?
The short-run shutdown rule is to shut down if:
A. P > AVC. B. P < ATC. C. P > ATC. D. P < AVC.
What is being depicted in this graph?
a. Real estate prices are low when supply is low.
b. An increase in land supply will increase the price.
c. Demand determines the amount paid for land.
d. It is more expensive to rent than to buy land.
Depreciation of the dollar will:
A. decrease the prices of both U.S. imports and exports. B. increase the prices of both U.S. imports and exports. C. decrease the prices of U.S. imports but increase the prices to foreigners of U.S. exports. D. increase the prices of U.S. imports but decrease the prices to foreigners of U.S. exports.