Category: Budget Deficits And The Trade Balance

A. has no impact on the real interest rate and fails to crowed out investment
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

A. decreases a country’s net exports and increases its long-run growth path
B. increases a country’s net exports and increases its long-run growth path
C. increases a country’s net exports and decreases its long-run growth path
D. decreases a country’s net exports and decreases its long-run growth path

A. A government budget deficit
B. Capital flight
C. An increase in Private saving
D. A tariff

A. depreciate and would increase UK net exports
B. appreciate and would increase UK net exports
C. depreciate and would decrease UK net exports
D. appreciate, but the total value of UK net export stays the same

A. The pound appreciates, and UK net exports rise
B. The pound appreciates, and UK net exports fall
C. The pound depreciates, and UK net exports rise
D. The pound depreciates, and UK net exports fall

A. increase Pakistan’s net exports and Pakistan’s net capital outflow the same amount
B. Increase Pakistan’s net exports and decrease Pakistan’s net capital outflow
C. decreases Pakistan’s net exports and Pakistan’s net capital outflow the same amount
D. decrease Pakistan’s net exports and increase Pakistan’s net capital outflow

A. A decrease in the government budget deficit increase the real interest rate
B. An increase in the government budget deficit shifts the supply of loanable funds to the right
C. An increase in private saving shifts the supply of loanable funds to the left
D. An increase in the government budget deficit shifts the supply of loanable funds to the left

A. An increase in Pakistan’s net capital outflow increase the supply of rupees and the rupees depreciate
B. An increase in Pakistan’s net capital outflow increase the demand of rupees and the rupees appreciate
C. An increase in Pakistan’s net capital outflow increase the demand of rupees and the rupees depreciate
D. An increase in Pakistan’s net capital outflow increase the supply of rupees and the rupees appreciate

A. An increase in Pakistan’s net exports decreases the supply of rupees and the rupees depreciates
B. An increase in Pakistan’s net exports increase the demand for rupees and the rupees appreciates
C. An increase in Pakistan’s net exports increases the Supply of rupees and the rupees depreciates
D. An increase in Pakistan’s net exports decrease the demand for rupees and the rupees appreciates