If a government increases its budget deficit, then domestic interest rates
a. and net exports rise.
b. rise and net exports fall.
c. fall and net exports rise.
d. and net exports fall.
b
You might also like to view...
If the economy's real GDP doubles in 9 years, we can
A. conclude that its average annual rate of growth is 8%. B. not say anything about the average annual rate of growth. C. conclude that its average annual rate of growth is 4%. D. conclude that its average annual rate of growth is 12%.
The marginal product of a country's workers falls during winters due to excessive cold. Which of the following is likely to happen in this case, assuming all else equal?
A) The country's labor demand curve will shift to the right in winter. B) There will be an upward movement along the labor demand curve. C) The country's labor demand curve will shift to the left in winter. D) There will be a downward movement along the labor demand curve.
Jenna runs a small boutique in Capitola. She tells one of her suppliers that she is willing to pay $6 for a pair of wool hand warmers and not a dime more
On the basis of this information, what can you conclude about her price elasticity of demand for wool hand warmers? A) The price elasticity coefficient is 0. B) It is elastic. C) It is perfectly elastic. D) It is perfectly inelastic.
In general, an externality is created when
A) people are affected (other than by price) by a transaction which they were not part of. B) firms produce a product of low quality and consumers don't like it. C) firms have to pay for pollution the environment. D) the government subsidizes education.