Multiple Choice
In an open economy,there should be a close positive relationship between
A) budget deficits and interest rates.
B) trade deficits and budget deficits.
C) savings and investment.
D) investment and consumption.
E) none of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q35: Which of the following statements is (are)correct?
Q36: Assuming perfect capital mobility and flexible exchange
Q37: Under perfect capital mobility,an increase in world
Q38: If exchange rates are perfectly flexible,an expansionary
Q39: A rightward shift of the BP curve
Q40: Assume perfect capital mobility.Under a fixed exchange
Q42: Which of the following statements is (are)correct?<br>A)Given
Q43: In the Mundell-Fleming model with perfect capital
Q44: In the Mundell-Fleming model,the exogenous variables are<br>A)government
Q45: Assume perfect capital mobility and a fixed