Expansionary fiscal policy in an open economy
a. leads to a balance of trade surplus.
b. decreases America's capital account surplus and the current account deficit by the same amount.
c. increases both America's capital account surplus and current account deficit by equal amounts.
d. increases America's capital account surplus more than it increases the current account deficit.
c
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The figure above represents the competitive market for slices of key lime pie. When 60 slices are produced, the marginal cost
A) exceeds the marginal benefit. B) is less than the marginal benefit. C) equals the marginal benefit. D) is not defined. E) equals the deadweight loss on the 60th slice.
If the public has correct rational expectations and the Fed reduces both reserve requirements and the discount rate, it would be expected to result in: a. a higher level of real output and a lower price level. b. a lower price level but no change in real output
c. a higher price level and a reduced level of real output. d. a higher price level but no change in real output.
Signaling is when someone takes action to:
A. reveal one's own private information. B. find out the opportunity cost of acquiring more information. C. reveal private information about someone else. D. None of these statements is true.
One of the key economic questions is, "Who consumes the products?"
Answer the following statement true (T) or false (F)