If the U.S. government went from a budget deficit to a budget surplus then
a. the interest rate and the real exchange rate would increase.
b. the interest rate and the real exchange rate would decrease.
c. the interest rate would increase and the real exchange rate would decrease.
d. the interest rate would decrease and the real exchange rate would increase.
b
Economics
You might also like to view...
Along an LM curve at lower income levels the transactions demand for money is __________, so the interest rate must be __________ to equate the demand to the fixed supply of money
A) higher; higher B) higher; lower C) lower; higher D) lower; lower
Economics
The Celler-Kefauver Act made it illegal to
a. provide selective discounts b. set prices below marginal cost c. conspire to collude d. buy a competitor's patents, plants, or equipment e. price discriminate
Economics