In an open economy, the source of the demand for loanable funds is
a. national saving
b. national saving + net capital outflow
c. investment + the government budget deficit
d. investment + net capital outflow
d
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Which of the following correctly explains the crowding-out effect?
a) An increase in government expenditures decreases the interest rate and so increases investment spending. b) An increase in government expenditures increases the interest rate and so reduces investment spending. c) A decrease in government expenditures increases the interest rate and so increases investment spending. d) A decrease in government expenditures decrease the interest rate and so reduces investment spending.
If the Japanese yen appreciates from $0.01 per yen to $0.02 per yen, the U.S. dollar depreciates from ________ per dollar to ________ per dollar
A) 100¥; 50¥ B) 10¥; 5¥ C) 5¥; 10¥ D) 50¥; 100¥