From 2001 to 2004 the U.S. budget went from surplus to deficit. According to the open economy macroeconomic model, this change should have
a. increased U.S. interest rates and increased the real exchange rate of the dollar.
b. increased U.S. interest rates and decreased the real exchange rate of the dollar.
c. decreased U.S. interest rates and increased the real exchange rate of the dollar.
d. decreased U.S. interest rates and decreased the real exchange rate of the dollar.
a
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Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 5 percent, an initial deposit of $10,000 will lead to a total increase in deposits of
A) $500. B) $10,000. C) $50,000. D) $200,000.
We can tell how much physical capital has been added to the economy by:
A. taking into account both new investment and depreciation of capital. B. adding up the value of all tools, equipment, and structures that have ever been built. C. counting the number of persons of working age. D. counting the number of persons of working age who are employed.
Which of the following is an example of cyclical unemployment?
A. Qadir is employed in the summer as a lifeguard but cannot find a position in the winter B. Quincy left his job in Dallas to search for a new job in Idaho C. Quinlan worked as an engineer until he was laid off because of a decrease in aggregate demand D. Quinn has few job-related skills so she is never hired even though she continues to apply
The government agency that makes sure that customers' money is safe if a bank fails:
a. Ponzi Depository b. FDIC c. Federal Reserve d. NASDAQ