(Solution) If A Country Went From A Government Budget Deficit To A Surplus, National Saving Would Answer A. Increase, Shifting The Supply Of Loanable Funds... | Snapessays.com


(Solution) If a country went from a government budget deficit to a surplus, national saving would Answer a. increase, shifting the supply of loanable funds...


If a country went from a government budget deficit to a surplus, national saving would

 

Answer

 

a.

 

increase, shifting the supply of loanable funds right.

 

b.

 

increase, shifting the supply of loanable funds left.

 

c.

 

decrease, shifting the demand for loanable funds right.

 

d.

 

decrease, shifting the demand for loanable funds left.

 

 

In the open economy macroeconomic model, the amount of dollars demanded in the market for for-eign-currency exchange at a given real exchange rate increases if

 

Answer

 

a.

 

either U.S. imports or exports increase.

 

b.

 

either U.S. imports or exports decrease.

 

c.

 

either U.S. imports increase or U.S. exports decrease.

 

d.

 

either U.S. imports decrease or U.S. exports increase.

 

 

If the U.S. government went from a budget deficit to a budget surplus then

 

Answer

 

a.

 

the interest rate and the real exchange rate would increase.

 

b.

 

the interest rate and the real exchange rate would decrease.

 

c.

 

the interest rate would increase and the real exchange rate would decrease.

 

d.

 

the interest rate would decrease and the real exchange rate would increase.

 


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This question was answered on: May 23, 2022

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