Multiple Choice
Persistent current account deficits make sense if
A) personal income taxes are reduced.
B) government interest rates go down accordingly.
C) the associated foreign borrowing is used to finance increased productive capacity.
D) the capital account surplus is reduced.
E) the government budgetary debt is not growing.
Correct Answer:
Verified
Correct Answer:
Verified
Q25: Since 1980, the real interest rate<br>A)has increased
Q26: Which of the following is a fundamental
Q27: Which of the following best describes the
Q28: What explains the trends in nominal interest
Q29: When a country has a current account
Q31: Explain why macroeconomists tend to use models
Q32: Money is differentiated from other assets due
Q33: Business cycles are<br>A)similar, and all are created
Q34: More government spending<br>A)can compete with private spending
Q35: What is produced and consumed in the