From 2001 to 2004 the U.S. budget went from surplus to deficit. According to the open economy macroeconomic model, this change should have
a. increased U.S. interest rates and increased the real exchange rate of the dollar.
b. increased U.S. interest rates and decreased the real exchange rate of the dollar.
c. decreased U.S. interest rates and increased the real exchange rate of the dollar.
d. decreased U.S. interest rates and decreased the real exchange rate of the dollar.
a
Economics
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An increase in the real interest rate causes
A) the IS curve to shift to the right. B) the IS curve to shift to the left. C) a movement up the IS curve. D) a movement down the IS curve.
Economics
Which of the following is a desirable feature in an economy?
A. low inflation B. rapid increase in output per worker C. low unemployment D. all of the above
Economics