An increase in the budget surplus
a. raises net exports and domestic investment.
b. raises net exports and reduces domestic investment.
c. reduces net exports and domestic investment.
An increase in the budget surplus a. raises net exports and domestic investment. b. raises net...
if domestic savings exceeds investment, then net exports are ________ and net capital outflows are __________. a) positive; positive b) positive; negative c) negative; positive d) negative; negative
The net export function illustrates that:A) net exports are a positive function of domestic income.B) net exports are independent of domestic income.C) net exports are a negative function of domestic income.D) imports are independent of domestic income.E) exports are independent of foreign income. Suppose the marginal propensity to import for country A is 0.4. Calculate the change in total value of imports of the country if national income increases by $100,000.A) $16,000B) $20,000C) $60,000D) $40,000E) $25,000 An MPI of 0.4 indicates that...
QUESTION 36 Which of the following is most likely to increase U.S. exports? O a. The government reduces the size of the budget surplus. Ob. The government gives subsidies to U.S. firms that export goods or services. OC. Taxes on domestic saving rise. Od. The United States unilaterally reduces its restrictions on foreign imports.
QUESTION 7 Select all that are true given an increase in exports from the domestic economy: Domestic economic growth slows The relative price of exports falls Investment from the domestic economy to the foreign economies decreases The domestic currency depreciates QUESTION 8 The current account moves in to surplus, select all of the following that might result: The home price of goods increases Assuming no change in foreign reserves, the domestic interest rate rises Demand for DC increases Output increases
Other things the same, an increase in the price level induces less spending on a. investment and net exports. b. investment, but not net exports. c. net exports, but not investment. d. neither net exports nor investment.
QUESTION 22 A decrease in the budget deficit a. may increase, decrease, or not affect investment spending if private saving doesn’t change. b. makes investment spending fall. c. makes investment spending rise. d. does not affect investment spending. QUESTION 23 A larger budget deficit a. raises the interest rate and investment. b. raises the interest rate and reduces investment. c. reduces the interest rate and investment. d. reduces the interest rate and raises investment. QUESTION 24 A government budget deficit...
If there is a decrease in world investment ________. net exports would decrease domestic saving would rise domestic output would go up all of the above none of the above
domestic consumer surplus A ban on imports will domestic producer surplus, and O A. increase; decrease O B. decrease; decrease O C. increase; increase O D. decrease; increase
IV. Suppose there is an increase in foreign output. a. Show the effect on the domestic economy using a two panel diagram that illustrates equilibrium output and net exports. What is the effect on domestic output? On domestic net exports? b. If the interest rate remains constant, what will happen to domestic investment? If taxes are fixed, what will happen to the domestic budget deficit? c. What must happen to private saving? Explain. d. Foreign output does not appear in...
IV. Suppose there is an increase in foreign output. a. Show the effect on the domestic economy using a two panel diagram that illustrates equilibrium output and net exports. What is the effect on domestic output? On domestic net exports? b. If the interest rate remains constant, what will happen to domestic investment? If taxes are fixed, what will happen to the domestic budget deficit? c. What must happen to private saving? Explain. d. Foreign output does not appear in...