From 2001 to 2004,the U

Multiple Choice

From 2001 to 2004,the U.S.government went from a budget surplus to a budget deficit.According to the open-economy macroeconomic model,this should have decreased

A) both the supply of loanable funds and the supply of dollars in the market for foreign-currency exchange.
B) neither the supply of loanable funds nor the supply of dollars in the market for foreign-currency exchange.
C) the supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.
D) the supply of dollars in the market for foreign-currency exchange,but not the supply of loanable funds.