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If a Country Raises Its Budget Deficit,then Net Capital Outflow

Question 11

Multiple Choice

If a country raises its budget deficit,then net capital outflow


A) rises,so the supply of its currency shifts right in the market for foreign-currency exchange.
B) rises,so the demand for its currency shifts right in the market for foreign-currency exchange.
C) falls,so the supply of its currency shifts left in the market for foreign-currency exchange.
D) falls,so the demand for its currency shifts right in the market for foreign-currency exchange.

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