Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
Textbook Question
Chapter 31, Problem 19CTQ

Explain how a shift from a government budget deficit to a budget surplus might affect the exchange rate.

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A government decides to introduce an expenditure-switching measure to reduce a balance of trade deficit. Which of the following is an expenditure-switching measure? Pick a,b,c, or d A. A government subsidy to domestic producers B. An increase in income tax C. An increase in the rate of interest D.A decrease in state benefits
Why is a nation with a current account deficit a borrower at that point in time?
What is a foreign trade deficit or surplus? How does this affectinterest rates?

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Principles of Economics 2e

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