Multiple Choice
A budget deficit ________.
A) may have stimulative effects on economic activity in the short run
B) contributes to lower interest rates in the long run
C) is likely to increase future productive capacity in the long run
D) all of the above
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q36: When a U.S.firm sells a good abroad
Q37: Saving-Investment Diagram <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5036/.jpg" alt="Saving-Investment Diagram
Q38: Which of the following would lead domestic
Q39: Which of the following would lead domestic
Q40: Why is it important,for an open economy,that
Q42: The domestic real interest rate (r)for a
Q43: _ typically lead to increases in _.<br>A)decreases
Q44: A foreign bank receives a deposit of
Q45: In an open economy,an increase in saving
Q46: If we observe an economy in which