An increase in the government budget deficit
A) has no impact on the real interest rate and fails to crowd out investment because foreigners buy assets in the deficit country.
B) decreases the real interest rate and crowds out investment.
C) None of these answers.
D) increases the real interest rate and crowds out investment.
Correct Answer:
Verified
Q5: Other things the same,a lower real interest
Q8: Net capital outflow is the purchase of
Q9: Which of the following statement regarding the
Q14: A country's net capital outflow is always
Q15: The supply of foreign exchange is
A)determined by
Q16: If SA raises its tariff on imported
Q17: Which of the following statements regarding the
Q17: An increase in SA net capital outflow
Q138: The open-economy macroeconomic model examines the determination
Q511: The open-economy macroeconomic model takes
A)GDP, but not
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents