If domestic savings is less than domestic investment, then
A) reserve assets will increase.
B) the government runs a budget deficit.
C) there will be negative foreign investment.
D) a trade surplus must result.
C
Economics
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Real GDP
a. moves in the opposite direction as unemployment. b. increases as production falls. c. falls when households save a smaller fraction of their income. d. All of the above are correct.
Economics
The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will depreciate when:
A. Japanese consumers increase their preference for U.S. cars. B. the U.S. Federal Reserve eases monetary policy. C. real GDP in the U.S. decreases. D. the Bank of Japan eases monetary policy.
Economics