Chat with AIExam 20: Macro Policy in a Global Setting
Exam 1: Economics and Economic Reasoning37 Questions
Exam 2: The Production Possibility Model, Trade and Globalization22 Questions
Exam 3: Economic Institutions19 Questions
Exam 4: Supply and Demand31 Questions
Exam 5: Using Supply and Demand23 Questions
Exam 6: Economic Growth, Business Cycles, and Unemployment22 Questions
Exam 7: Measuring the Aggregate Economy47 Questions
Exam 8: The Aggregate Demand-Aggregate Supply Model41 Questions
Exam 9: Growth, Productivity, and the Wealth of Nations23 Questions
Exam 10: The Financial Sector and the Economy34 Questions
Exam 11: Monetary Policy37 Questions
Exam 12: Financial Crises, Panics, and Unconventional Monetary Policy21 Questions
Exam 13: Deficits and Debt: the Austerity Debate32 Questions
Exam 14: The Fiscal Policy Dilemma16 Questions
Exam 15: Jobs and Unemployment15 Questions
Exam 16: Inflation, Deflation and Macro Policy36 Questions
Exam 17: Comparative Advantage, Exchange Rates, and Globalization12 Questions
Exam 18: International Trade Policy18 Questions
Exam 19: International Financial Policy46 Questions
Exam 20: Macro Policy in a Global Setting23 Questions
Exam 21: Structural Stagnation and Globalization22 Questions
Exam 22: Macro Policies in Developing Countries23 Questions
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An earlier chapter discussed the issue of crowding out.Crowding out refers to the idea that a budget deficit will add government borrowing to other demands for loans, driving up the interest rate, which will reduce private investment.How do international considerations (the possibility that the debt is purchased by foreigners) affect this issue? Is it possible to internationalize the debt? Does that mean that crowding out is not a problem in this case?
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(35) Why is there a significant debate about our international macroeconomic goals with respect to exchange rates and the trade deficit?
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