If the Canadian government raises it budget deficit, then Canada's net capital outflows will

a. increase, so its exchange rate will rise.
b. increase, so its exchange rate will fall.
c. decrease, so its exchange rate will rise.
d. decrease, so its exchange rate will fall.


c

Economics

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If consumption increases by $9 when disposable income increases by $10, the marginal propensity to consume (mpc) equals:

A. 0.1. B. 1.0. C. 9.0. D. 0.9.

Economics

If this quote is TRUE, what would the neoclassical growth theory predict?

A) Economic growth stops because most technological advances have already been made. B) Economic growth is temporary regardless of technological change and GDP per person returns to subsistence levels. C) Economic growth will persist indefinitely because technological change will accelerate again as firms seek profits. D) Economic growth will accelerate because these technological changes are permanent.

Economics

Both buyers and sellers are price takers in a perfectly competitive market because

A) each buyer and seller is too small relative to others to independently affect the market price. B) both buyers and sellers in a perfectly competitive market are concerned for the welfare of others. C) the price is determined by government intervention and dictated to buyers and sellers. D) each buyer and seller knows it is illegal to conspire to affect price.

Economics

The European Monetary Union, which preceded the Euro, was

A) opposed by most politicians. B) favored by most economists. C) likely to improve the use of monetary policy to deal with contractionary shocks which strike only one or two countries in Europe. D) all of the above. E) none of the above.

Economics