If the government of a country with a zero trade balances increases its budget deficit, then interest rates
a. rise and the trade balance moves to a surplus.
b. rise and the trade balance moves to a deficit.
c. fall and the trade balance moves to a surplus.
d. fall and the trade balance moves to a deficit.
b
You might also like to view...
All points on an indifference curve represent combinations of two goods that are equally desirable to the consumer.
Answer the following statement true (T) or false (F)
Absolute advantage occurs when one nation can produce a good ____ its trading partners
a. in larger quantities than b. faster than c. that is desired by d. more efficiently than e. only consumed by
If a price ceiling of $5 per gallon is imposed on gasoline, and the market equilibrium price is $4.50, then the price ceiling is a binding constraint on the market
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of horizontal equity?
a. A wealthy individual should pay more taxes than a lower-income individual b. A wealthy individual should have a greater average tax rate than a middle-income individual c. Two persons with identical incomes should pay the same taxes d. A local government decides to impose taxes based on the benefits principle