Which curve in the market for foreign-currency exchange shifts and which direction does it shift if the government budget deficit increases? Explain why an increase in the budget deficit shifts this curve
The supply curve in the market for foreign-currency exchange shifts left. An increase in the government budget deficit raises the interest rate. An increase in the interest rate reduces net capital outflow which is the source of the supply of dollars in the market for foreign-currency exchange.
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If the economy is growing 5% a year and GDP is $1000 billion, the additional revenues available to meet interest payments on the government deficit would be, ceteris paribus,
A) 50. B) 500. C) It depends upon the amount of new debt issued. D) There would be no additional revenues.
What role do non-monetary considerations play in physical capital investment decisions as opposed to human capital investment decisions?
a. they play a minor to nonexistent role in both. b. they play an equally important role in both. c. they are probably more important in physical capital investment decisions. d. they are probably more important in human capital investment decisions.
One way of organizing two periods of panel data is to have only one record per cross-sectional unit.
Answer the following statement true (T) or false (F)
Strategic trade policy relies on threats of protectionism to protect free trade.
Answer the following statement true (T) or false (F)