From 2001 to 2004, the U.S. government went from a budget surplus to a budget deficit. According to the open-economy macroeconomic model, this should have decreased
a. both the supply of loanable funds and the supply of dollars in the market for foreign-currency exchange.
b. neither the supply of loanable funds nor the supply of dollars in the market for foreign-currency exchange.
c. the supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.
d. the supply of dollars in the market for foreign-currency exchange, but not the supply of loanable funds.
a
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When E decreases by 3%, we know that
A) a real appreciation will occur if P also falls by 3%. B) a real depreciation will occur if P increases by 3%. C) nominal appreciation. D) nominal depreciation.
Which of the following is an example for group price discrimination?
A) a BMW selling for more than a VW B) local residents receiving a discount at the local golf course C) the fact that a razor is cheap and blades are expensive D) a hotel charging more for a room if the customers bring pets