Assuming no change in the effective tax rate on capital, a decrease in the government budget deficit will reduce the current account deficit if and only if the decrease in the budget deficit
A) reduces desired national saving.
B) increases desired national saving.
C) reduces desired national investment.
D) increases desired national investment.
B
Economics
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What is true of both expansions and recessions?
a. There is a poorer than normal match between workers and their jobs. b. The labor market clears. c. The economy operates at its potential output. d. Cyclical unemployment is zero. e. None of the above.
Economics
The unlawful misdirection of governmental resources for personal gain is known as:
A. political corruption. B. logrolling. C. adverse selection. D. the special-interest effect.
Economics