Which of the following would not be a consequence of an increase in the U.S. government budget deficit?
a. the U.S. trade balance rises
b. the U.S. interest rate rises
c. domestic investment in the U.S. falls
d. the real exchange rate of the U.S. dollar appreciates
a
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For each of the following values of nominal GDP and real GDP, calculate the GDP price index
a. Nominal GDP = $600; real GDP = $800. b. Nominal GDP = $900; real GDP = $900. c. Nominal GDP = $1,200; real GDP = $1,000.
The largest single factor contributing to the increase in the health care spending is:
a. increasing administrative costs of health care b. expanded capabilities of medicine brought about by technological advances c. increasing prices in the health care sector d. none of the above
The GDP deflator is
What will be an ideal response?
In a decreasing-cost industry, an increase in industry output will
A) lead to a higher market price. B) lead to a lower market price. C) shift each firm's average fixed cost curve up. D) shift each firm's short run supply curve up.