In 2008, Germany had a budget deficit of 37 billion euros. This will budget deficit ________ the supply of loanable funds and ________ the real interest rate
A) increased; lowered
B) decreased; raised
C) decreased; lowered
D) increased; raised
B
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Suppose that you own $10,000 worth of stock in General Motors. Adding stock in which of the following companies would be least likely to reduce the risk in your portfolio?
A) Google B) Walmart C) Ford D) General Electric
If there is a surplus of euros at the current exchange rate, the exchange value of euros will tend to fall
a. True b. False Indicate whether the statement is true or false
Consider two countries: Eastland and Westland. Eastland's long-run Phillips curve sits further to the right than does Westland's long-run Phillips curve. Eastland and Westland are identical in all other ways. In particular, they have the same money supply growth rates. In the long run, compared to Westland, which of the following will we observe in Eastland?
a. higher unemployment and higher inflation. b. higher unemployment and the same rate of inflation. c. lower unemployment and higher inflation. d. None of the above is correct.
The U.S. trade deficit is most likely to be harmful in the future if:
A. U.S. citizens refuse to lend to foreigners as a result of it. B. U.S. citizens continue to accumulate foreign assets. C. U.S. production continues to exceed U.S. consumption. D. the inflow of financial capital associated with the current deficit does not finance productive investment.