In the two-period SOE model, if the real interest rate decreases and the current account is initially in deficit, then
A) the current account surplus stays the same.
B) the current account surplus falls.
C) the current account deficit falls.
D) the current account surplus rises.
E) the current account deficit stays the same.
Correct Answer:
Verified
Q5: A current account deficit is
A) good because
Q6: If current taxes increase, then
A) the current
Q7: In a small open economy model
A) domestic
Q8: In the two-period SOE model, if future
Q9: One of the reasons why the growth
Q11: In the two-period SOE model, equal increases
Q12: For Canada,
A) a small open economy assumption
Q13: International trade has increased for all of
Q14: One of the reasons why the growth
Q15: GATT is
A) the Government Agreement on Trade
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