To eliminate the trade deficits in the late 1990s would have required, in addition to the reduction of the federal budget deficit, an increase in
A. investment spending.
B. the exchange value of the dollar.
C. the U.S. price level.
D. the saving rate.
Answer: D
Economics
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Which of the following correctly identifies a method to restore an economy to full employment, if it is operating below full employment due to a decrease in net exports?
A) Reduce the interest rate. B) Increase the real exchange rate. C) Reduce the investment in the economy. D) Reduce the demand for goods and services in the economy.
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What challenges does the European Union face in the short, medium, and long run?
What will be an ideal response?
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