If there is an increase in foreign financial investment in the United States as the result of large U.S. budget deficits and attractive interest yields,
a. fiscal policy will be more expansionary since there will be no crowding-out effect.
b. fiscal policy will be more expansionary since U.S. residents will increase their savings, so they can repay the foreigners in the future.
c. foreign exchange value of the dollar will depreciate, which will lead to an increase in net exports and aggregate demand.
d. foreign exchange value of the dollar will appreciate, which will lead to a decrease in net exports and aggregate demand.
D
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Suppose a country has a larger increase in debt in 2014 than it had in 2013 . Then other things the same,
a. the supply of loanable funds shifts rightward and the interest rate falls. b. the supply of loanable funds shifts leftward and the interest rate rises. c. the demand for loanable funds shifts leftward and the interest rate falls. d. the demand for loanable funds shifts rightward and the interest rate rises.
Consumer surplus is the cumulative difference between:
A. consumers' incomes and consumers' expenditures. B. the suggested retail price and the price consumers actually pay. C. the amount consumers are willing to pay and the price they actually pay. D. consumers' savings and consumers' expenditures.
The ECB's focus on restraining inflation is, in large part, a result of:
A) Europe's experience with inflation during the 1960s. B) Germany's experience with hyperinflation during the period between the first and second world wars. C) the ECB's distrust of some of its smaller member countries (e.g., Finland, Portugal). D) its monetary policy having no effect on economic growth.
Economists call a single firm that can supply the entire market at a lower cost than two or more firms a __________ monopoly.
Fill in the blank(s) with the appropriate word(s).