Which of the following steps does not belong to the sequence of events reflecting the finance of a large government budget deficit?
a. The U.S. Treasury sells securities
b. The sale of securities drives up interest rates.
c. Attracted by the high interest rates, foreigners purchase dollars in order to invest in the U.S.
d. Greater demand for the dollar increases its value relative to other currencies.
e. The rising value of the dollar leads to increased U.S. exports and reduced U.S. imports.
e
You might also like to view...
What does it mean when one currency is "pegged" against another currency?
What will be an ideal response?
Consider a broom factory that permanently closes because of foreign competition. If the broom factory's workers cannot find new jobs because their skills are no longer marketable, then they are classified as:
A. seasonally unemployed. B. frictionally unemployed. C. structurally unemployed. D. cyclically unemployed.
Supply refers to the amount of a product that a producer will offer in the market at some particular price.
Answer the following statement true (T) or false (F)
Refer to the data. If the market price for the firm's product is $32, the competitive firm will produce:
A. 8 units at an economic profit of $16.
B. 6 units at an economic profit of $7.98.
C. 10 units at an economic profit of $4.
D. 7 units at an economic profit of $41.50.