Assuming that the increase in the value of the dollar in the foreign exchange market has a greater impact on aggregate demand than on aggregate supply, an increase in the United States budget deficit will raise Real GDP
A) more in an open economy than in a closed economy.
B) more in a closed economy than in an open economy.
C) to the same level irrespective of whether it is a closed or an open economy.
D) none of the above (i.e. Real GDP will decrease)
B
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A firm operating in a perfectly competitive industry will continue to operate in the short run but earn losses if the market price is less than that firm's average variable cost
a. True b. False Indicate whether the statement is true or false
Other things the same, in which case is the quantity produced the highest?
a. There is one firm. b. There are two firms that successfully collude. c. There are two firms in Nash equilibrium. d. There are a very large number of firms.
What is the velocity of money?
A) The rate at which GDP increases in a year B) The speed of capital accumulation C) The rate at which money circulates through an economy D) The rate at which the Federal Reserve increases or decreases the money supply E) The rate at which the aggregate price level increases
Which of the following statements is most accurate regarding who benefits and loses from establishment of a minimum wage above the market clearing wage?
A) Individuals who obtain jobs benefit because they earn a higher wage, but some individuals lose because employers will not hire them at the minimum wage. B) All workers benefit equally from the establishment of the minimum wage because just as many workers as before remain employed, and all earn the higher minimum wage. C) All employers benefit equally from the establishment of the minimum wage because they are able to hire fewer workers at a lower wage. D) All employers lose because they must pay the higher minimum wage to the same number of employees as they did before the minimum wage was established.