In a two-period model, holding everything else constant, an increase in government spending

A) unambiguously increases the current account surplus.
B) unambiguously decreases the current account surplus.
C) has an uncertain effect on the current account surplus.
D) has no effect on the current account surplus.


B

Economics

You might also like to view...

In the classical model, the interest rate will adjust to equate

A) consumption spending with real GDP. B) saving with investment. C) export spending with import spending. D) the economic growth rate with the growth rate of import spending.

Economics

Wrongful employment discrimination:

a. occurs when employers make hiring, promotion, and pay decisions based on factors unrelated to worker productivity b. in competitive markets, puts the discriminating employer at a competitive disadvantage c. both of the above d. neither of the above

Economics

If average variable cost is falling, we know that:

a. marginal cost is falling. b. marginal cost is less than average variable cost. c. marginal cost is greater than average variable cost. d. marginal cost is rising.

Economics

Which of the following best describes the distinguishing characteristics of business cycles?

What will be an ideal response?

Economics