Multiple Choice
Figure 32-3
Refer to the following diagram of the open-economy macroeconomic model to answer the questions that follow.
Graph (a)
Graph (b)
Graph (c)
-Refer to Figure 32-3. Suppose that the government goes from a budget surplus to a budget deficit. The effects of the change could be illustrated by shifting the
A) demand curve in panel a to the right and the demand curve in graph (c) to the left.
B) demand curve in panel a to the left and the supply curve in graph (c) to the left.
C) supply curve in panel a to the right and the demand curve in graph (c) to the right.
D) supply curve in panel a to the left and the supply curve in graph (c) to the left.
Correct Answer:

Verified
Correct Answer:
Verified
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