When the budget deficit is the main cause of the trade deficit, governments should take steps to
a. reduce their budget deficits to prevent making their economy vulnerable to a rapid outflow of international financial capital that could bring a deep recession.
b. increase their budget deficits to prevent making their economy vulnerable to a rapid outflow of international financial capital that could bring a deep recession.
c. reduce their budget deficits to prevent making their economy vulnerable to a rapid inflow of international financial capital that could bring a deep recession.
d. increase their budget deficits to prevent making their economy vulnerable to a rapid inflow of international financial capital that could bring a deep recession.
a. reduce their budget deficits to prevent making their economy vulnerable to a rapid outflow of international financial capital that could bring a deep recession.
You might also like to view...
The slope of an indifference curve
A) measures total utility. B) is calculated by dividing the quantity of the good on the vertical axis by the quantity of the good on the horizontal axis. C) measures the marginal rate of substitution between the two goods in question. D) is calculated by dividing the price of good on the vertical axis by price of the good on the horizontal axis.
Which of the following three actions would not be used by the Fed to influence interest rates?
a. selling securities b. buying stocks c. setting reserve requirements d. changing the discount rate e. moral suasion
If you receive a gift whose market price is $20, but you consider it to be worth only $10, then:
A. there is a $10 or 50 percent value gain. B. there may or may not be a value loss. C. there is a $10 or 50 percent value loss. D. you can be relatively certain the giver was a sibling or other close relative.
The short-run market supply curve shows the relationship between the market price and the quantity supplied in the short run.
Answer the following statement true (T) or false (F)