Which of the following would not be a consequence of an increase in the U.S. government budget deficit?
a. U.S. interest rates rise
b. U.S. net capital outflow falls
c. the real exchange rate of the U.S. dollar depreciates
d. the U.S. supply of loanable funds shifts left
c
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Complete "crowding-out" describes the situation in the economy when
A) fiscal policy is effective in changing output. B) the shift in the LM curve by monetary policy is "impotent." C) the shift in the IS curve by fiscal policy is "impotent." D) fiscal policy crowds out monetary policy.
When import quotas are imposed by a government
A) the domestic producers always lower the prices of their products to ensure that their products are sold. B) the government is trying to discourage consumers from buying foreign-made goods. C) the supply of the product on the domestic market increases. D) the price ceiling for the product has to be lowered.