A federal budget ________ occurs when the federal government spends more than it collects in taxes

Economic experience since 1973 indicate that, under floating exchange rates

A) large and persistent departures from external balance were not prevented. B) large and persistent departures from external balance were prevented. C) changes in exchange rates failed to act as automatic stabilizers. D) reduced monetary policy autonomy. E) monetary policy autonomy was protected.

In a closed economy, a decrease in government spending while taxes remain the same will be accompanied by

A) a decrease in private investment and an increase in privates saving. B) an increase in private investment and a decrease in private savings. C) a decrease in private investment only. D) an increase in private savings only.