Which of the following is TRUE of the relationship between U.S. trade deficits and federal government budget deficits?
A) Increases in the budget deficit are always associated with reductions in the trade deficit.
B) Increases in the budget deficit are always associated with increases in the trade deficit.
C) Increases in the budget deficit tend to be associated with increases in the trade deficit.
D) Increases in the budget deficit tend to be associated with reductions in the trade deficit.
C
You might also like to view...
A country that borrows more from the rest of the world than it lends to it in a year is called a ________, and a country that lends more to the rest of the world than it borrows from it in a year is called a ________
A) borrower; lender B) importer; exporter C) net borrower; net lender D) gross borrower; gross lender
Even though insignificant explanatory variables can raise the adjusted R2 of a demand function, one should not interpret their effects on the regression when
a. testing marketing hypotheses about the determinants of demand b. analyzing inventory relative to capacity requirements c. forecasting unit sales for operations planning d. sales revenue reaches its peak e. planning for capital budgets