Multiple Choice
According to the open-economy macroeconomic model, what would NOT be a consequence of an increase in the Canadian government budget deficit?
A) Canadian trade balance rises.
B) Canadian net capital outflow falls.
C) Canadian investment abroad decreases.
D) The real exchange rate of the Canadian dollar appreciates.
Correct Answer:

Verified
Correct Answer:
Verified
Q94: Which statement is consistent with negative net
Q95: According to the open-economy macroeconomic model, an
Q96: If foreign investors believe that the Lebanese
Q97: Since the mid-1990s, Canadian governments have tried
Q98: What is most likely to increase exports
Q100: What does the open-economy macroeconomic model take
Q101: What would make the equilibrium interest rate
Q102: In the open-economy macroeconomic model, what is
Q103: In an open economy, where does the
Q104: Figure 13-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7554/.jpg" alt="Figure 13-2