An increase in the budget surplus
a. raises net exports and domestic investment.
b. raises net exports and reduces domestic investment.
c. reduces net exports and domestic investment.
An increase in the budget surplus a. raises net exports and domestic investment. b. raises net...
If domestic savings are insufficient to finance domestic private investment and exports are greater than imports, it is most likely that the fiscal budget has a: A) deficit that is less than the trade surplus. B) deficit that is greater than the trade surplus. C) surplus that is greater than the trade surplus.
An increase in the budget deficit a. reduces investment because the interest rate rises. b. reduces investment because the interest rate falls. c. raises investment because the interest rate rises. d. raises investment because the interest rate falls.
if domestic savings exceeds investment, then net exports are ________ and net capital outflows are __________. a) positive; positive b) positive; negative c) negative; positive d) negative; negative
If the Fed raises the federal funds rate A. exports increase and imports decrease. B. in the short run the interest rate falls. C. investment increases. D. exports decrease and imports increase. E. real GDP increases.
The net export function illustrates that:A) net exports are a positive function of domestic income.B) net exports are independent of domestic income.C) net exports are a negative function of domestic income.D) imports are independent of domestic income.E) exports are independent of foreign income. Suppose the marginal propensity to import for country A is 0.4. Calculate the change in total value of imports of the country if national income increases by $100,000.A) $16,000B) $20,000C) $60,000D) $40,000E) $25,000 An MPI of 0.4 indicates that...
QUESTION 36 Which of the following is most likely to increase U.S. exports? O a. The government reduces the size of the budget surplus. Ob. The government gives subsidies to U.S. firms that export goods or services. OC. Taxes on domestic saving rise. Od. The United States unilaterally reduces its restrictions on foreign imports.
Other things the same, an increase in the price level induces less spending on a. investment and net exports. b. investment, but not net exports. c. net exports, but not investment. d. neither net exports nor investment.
QUESTION 7 Select all that are true given an increase in exports from the domestic economy: Domestic economic growth slows The relative price of exports falls Investment from the domestic economy to the foreign economies decreases The domestic currency depreciates QUESTION 8 The current account moves in to surplus, select all of the following that might result: The home price of goods increases Assuming no change in foreign reserves, the domestic interest rate rises Demand for DC increases Output increases
QUESTION 22 A decrease in the budget deficit a. may increase, decrease, or not affect investment spending if private saving doesn’t change. b. makes investment spending fall. c. makes investment spending rise. d. does not affect investment spending. QUESTION 23 A larger budget deficit a. raises the interest rate and investment. b. raises the interest rate and reduces investment. c. reduces the interest rate and investment. d. reduces the interest rate and raises investment. QUESTION 24 A government budget deficit...
If there is a decrease in world investment ________. net exports would decrease domestic saving would rise domestic output would go up all of the above none of the above