I Graphical AnalvsisNX is net exportsandicate the impact of variables/curve through arrows.Analyze the impact of following situations graphically1. Increase in budget deficit in 2. Increased business uncertaintyclosed economy:3. Consumer and business confi-dence in open economy with anin closed economy:initial trade deficit:Investments curve =Investments curve =Savings curve =Savings curve =Investments curve =Savings curve =Interest rate =Interest rate =Interest rate =NX =NX =NX =

The decline in interest rates tends to make borrowing cheaper which encourages spending by consumers…

indicate the impact of variables/curve through arrows. Analyze the impact of following situations graphically 3. Consumer and business confi- 1. Increase in budget deficit in 2. Increased business uncertainty closed economy: dence in open economy with an in closed economy: initial trade deficit: Investments curve = Investments curve = Investments curve = Savings curve = Interest rate = Savings curve = Interest rate = Savings curve = Interest rate = NX = NX = NX =

indicate the impact of variables/curve through arrows. Analyze the impact of following situations graphically 3. Consumer and business confi- 1. Increase in budget deficit in 2. Increased business uncertainty closed economy: dence in open economy with an in closed economy: initial trade deficit: Investments curve = Investments curve = Investments curve = Savings curve = Interest rate = Savings curve = Interest rate = Savings curve = Interest rate = NX = NX = NX =

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter31: The Impacts Of Government Borrowing

Section: Chapter Questions

Problem 19CTQ: Explain how a shift from a government budget deficit to a budget surplus might affect the exchange...

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