If the U.S. government went from a budget deficit to a budget surplus then
a. the interest rate and the real exchange rate would increase.
b. the interest rate and the real exchange rate would decrease.
c. the interest rate would increase and the real exchange rate would decrease.
d. the interest rate would decrease and the real exchange rate would increase.
b
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When young students are hungry, they can be disruptive and inattentive in class. Thus, providing lunch to students has external benefits. The figure above represents the market for school lunches before and after government vouchers are issued
a. What is the unregulated private market equilibrium? b. What is the efficient quantity of lunches? c. What is the amount of the voucher necessary to move the economy to the efficient number of lunches? d. When vouchers are used, what is the dollar price of the lunch that suppliers receive and what is the dollar price that consumers pay when the voucher is used?
If a union negotiates a wage above the market equilibrium, each firm hiring union members faces
a. a perfectly inelastic supply curve for labor b. a perfectly elastic supply curve for labor c. a perfectly inelastic demand curve for labor d. a perfectly elastic demand curve for labor e. perfectly inelastic supply and demand curves for labor
A firm's cost of production is affected by changes in
A. the available technology. B. input prices. C. profits. D. both a and b E. both b and c
The prospective gain per season to an owner from recruiting a new star player is that player's
A. reservation wage. B. capital value. C. marginal revenue product. D. marginal cost.