In an open economy, the government deficit is 400 and investment exceeds saving by 300, so in equilibrium the trade deficit (IM? X) must be

Under the gold standard of the Great Depression, any country experiencing a balance of payment deficit was expected to finance those deficits by exporting gold

The loss of gold should be followed by contractionary monetary policy, reducing demand and causing prices to fall. All countries operating under the gold standard followed these rules of the game throughout the Great Depression. Indicate whether the statement is true or false

If the tax base is narrowed through an increase in exemptions, ______ in order to raise the same level of revenue

a. tax rates must be lowered b. tax rates must be raised c. tax expenditures must be increased d. nothing must happen