QUESTION 20Suppose there is a rise in foreign output, Y*. This rise in Y* will cause which of the following to occur? The domestic country’s output decreases. The domestic country’s consumption increases. The domestic country’s trade balance worsens. all of the above none of the above

QUESTION 20Suppose there is a rise in foreign output, Y. This rise in Y will cause which of the following to occur? The domestic country’s output decreases. The domestic country’s consumption increases. The domestic country’s trade balance worsens. all of the above none of the above

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 42CTQ: Some economists warn that the persistent trade deficits and a negative current account balance that...

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

Question

QUESTION 20Suppose there is a rise in foreign output, Y*. This rise in Y* will cause which of the following to occur?

The domestic country’s output decreases.

The domestic country’s consumption increases.

The domestic country’s trade balance worsens.

all of the above

none of the above

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