A large federal budget deficit will not lead to a current account deficit if private saving ________ or domestic investment ________.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
Ans: B) increases; decreases
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In which of the following situations will market clearing price decrease and the equilibrium quantity increase?
A) an increase in demand with no change in supply B) an increase in supply with no change in demand C) a decrease in supply with no change in demand D) a decrease in demand with no change in supply
Our currency is issued by the ________________.
Fill in the blank(s) with the appropriate word(s).
In the prisoner's dilemma game:
A. both players have a dominant strategy. B. neither player has a dominant strategy. C. only one player will ever have a dominant strategy. D. All of these may be true in a prisoner's dilemma game.
Explain why a nation is a borrower if its current account is in deficit at a given point in time.
What will be an ideal response?