Despite an increase in the government deficit, interest rates could fall if
A) United States investments look stronger than foreign investments, causing a capital inflow.
B) there is an increase in bank reserves by the Fed.
C) the supply of loanable funds increases.
D) All of the above are correct.
Correct Answer:
Verified
Q30: If we propose to pay for increases
Q31: If government securities are sold to the
Q32: _ increases the capital stock or inventories.
A)Government
Q33: The exchange rate is influenced by changes
A)in
Q34: Ceteris paribus, if government spending increases,
A)the demand
Q36: If interest rates on government bonds are
Q37: If the value of goods a country
Q38: Ceteris paribus, as the dollar appreciates,
A)foreigners increase
Q39: If capital outflows exceed capital inflows, the
Q40: If foreigners purchase U.S. financial assets, they
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