What is the interest rate on a 12-month U.K. certificate of deposit if the dollar return on the certificate is 4 percent and the dollar has appreciated 9 percent against the British pound?

A balance of payments deficit is defined as the amount by which

A. a country’s exports exceed its imports. B. a currency must appreciate in order to reach equilibrium. C. quantity supplied of a country’s currency exceeds quantity demanded. D. quantity demanded of a country’s currency exceeds quantity supplied.

When the government wants to spend money

a. current consumption will fall only if the government borrows. b. current consumption will fall only if the government raises taxes. c. current consumption will fall if the government borrows or raises taxes. d. current consumption will not be affected.