Multiple Choice
In an open economy, the government deficit is 400 and investment exceeds saving by 300, so in equilibrium the trade deficit (IM − X) must be
A) 100
B) 200
C) 300
D) 700
Correct Answer:

Verified
Correct Answer:
Verified
Q1: International trade tends to lower the value
Q2: Figure 36-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-7
Q3: Figure 36-9<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-9
Q4: A currency appreciation should<br>A)reduce net exports and
Q6: Because the United States is highly integrated
Q7: Suppose that the Fed decides to increase
Q8: Figure 36-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-7
Q9: Figure 36-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-7
Q10: When the dollar depreciates, the prices of
Q11: Expansionary fiscal policy in an open economy<br>A)leads