An increase in U.S. federal government budget deficits that raises U.S. interest rates relative to the rest of the world should
A) raise the trade balance.
B) decrease foreign portfolio investment.
C) cause the dollar to depreciate.
D) increase net exports.
E) lead to a current account deficit.
E
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A bank with $200 million in transaction deposits keeps $20 million in cash in the bank vault, $10 million in deposits at the Fed, and $5 million in government securities in the bank vault. Its total reserves equal
A) $30 million. B) $10 million. C) $20 million. D) $35 million.
Which question is an example of a microeconomic question?
A. What factors are contributing to the rise of unemployment in the economy? B. Will the inflation rate remain relatively stable this year? C. What should the federal government do to reduce the trade deficit with Japan? D. Will the merger of two airlines likely result in higher airline ticket prices?
In Table 9.4, Market 1 would be in equilibrium if buyers believed lemons accounted for:
A. about 90.91% of the market. B. about 74.5% of the market. C. about 63.25% of the market. D. about 57.65% of the market.
If Lisa spends her income on veggie burgers and pints of soy milk and the price of veggie burgers is three times the price of a pint of soy milk, then when Lisa maximizes her utility she will buy
A) both goods until the marginal utility of veggie burgers is three times the marginal utility of soy milk. B) three times as many veggie burgers as pints of soy milk. C) three times as many pints of soy milk as veggie burgers. D) both goods until the marginal utility of a pint of soy milk is three times the marginal utility of veggie burgers.