Which of the following contains a list only of things that increase when the budget deficit of the U.S. increases?
a. U.S. supply of loanable funds, U.S. interest rates, U.S. domestic investment
b. U.S. imports, U.S. interest rates, the real exchange rate of the dollar
c. U.S. interest rates, the real exchange rate of the dollar, U.S. domestic investment
d. the real exchange rate of the dollar, U.S. net capital outflow, U.S. net exports
b
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Mutual funds sell shares to investors and use the funds to
A) pay dividends. B) purchase newly issued shares of a particular company's stock. C) invest in a portfolio of financial assets. D) purchase Treasury bonds.
To help developing nations strengthen their international competitiveness, many industrial nations have granted tariff reductions to developing nations under the
A) international commodity agreements program. B) multilateral contract program. C) generalized system of preferences program. D) export led growth program. E) import substitution policy.
In Figure 13-3 above, given the unstable demand for money and a stable commodity demand, a stable output level at C would best be promoted by
A) targeting interest rates by the Fed. B) decreasing taxes. C) increasing expenditures by the government. D) decreasing expenditures by the government.
The import demand curve shows the amount of the home country's:
a. surplus at various prices below the "no-trade" equilibrium. b. shortage at various prices below the "no-trade" equilibrium. c. equilibrium "no-trade" quantity demanded. d. surplus at various prices above the "no-trade" equilibrium. e. shortage at various prices above the "no-trade" equilibrium.