A decrease in the government's budget deficit
A) will lead to a decrease in imports, a depreciated dollar, an increase in exports, and a decrease in the international trade deficit.
B) will lead to an increase in imports, an appreciated dollar, a decrease in exports, and an increase in the international trade deficit.
C) will lead to an increase in imports, a depreciated dollar, an increase in exports, and an uncertain effect on the international trade deficit.
D) will lead to a decrease in imports, an appreciated dollar, a decrease in exports, and an uncertain effect on the international trade deficit.
Correct Answer:
Verified
Q55: Each of the following is a potential
Q56: In the short-run, a government budget deficit
Q57: In the short-run, the effect on real
Q58: In the short-run, a government budget surplus
Q59: In the short-run, the effect on real
Q60: An increase in the government's budget deficit
A)
Q62: Higher full-employment deficits
A) reduce total savings, raise
Q63: Lower full-employment deficits
A) reduce total savings, raise
Q64: Higher full-employment deficits
A) shift the IS curve
Q65: Lower full-employment deficits
A) shift the IS curve
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