The expected effects of an increased budget deficit are
A. higher real interest rates.
B. exchange rate depreciation.
C. lower inflation.
D. All of these responses are correct.
Answer: A
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Before the 1970's, the immigrant population in the U.S.:
A. Was more likely to receive public assistance than people born in the United States B. Was less likely to receive public assistance than people born in the United States C. Was just as likely to receive public assistance as people born in the United States D. Did not qualify for public assistance
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Explain how the following will affect the supply curve of coffee
a) A fall in the wages paid to coffee workers b) An increase in the availability of high-yielding coffee plants c) A decrease in the quantity of land under coffee cultivation What will be an ideal response?
Whenever the price of Good A increases, the demand for Good B increases as well. Good A and B appear to be: a. complements. b. substitutes
c. inferior goods. d. normal goods.