According to the Keynesians,
a. an easy-fiscal tight-monetary policy reduces the trade deficit, such as what occurred during the 1980s.
b. an easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S. exports, as was experienced during the 1980s.
c. there was not a link between the rising government budgetary deficit and the rising trade deficit during the mid-1980s.
d. budget deficits and trade deficits should not be a source of concern
B
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Based on the above figure, which of the following is TRUE?
A) At a price of $6, quantity demanded is equal to quantity supplied. B) At a price of $4, quantity demanded is greater than quantity supplied. C) At a price of $8, quantity demanded is less than quantity supplied. D) All of the above answers are correct.
With the invention of ATM machines, the public now holds less currency. As a result, we would expect to have seen
a. both the M1 and the M2 multipliers to increase over time. b. the M1 multiplier to increase while the M2 multiplier to decrease over time. c. the M1 multiplier to decrease while the M2 multiplier to increase over time. d. None of the above