Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

46. If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back

46. If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? A decrease in

Group of answer choices

reserves and an increase in interest rates.

taxes.

oil prices.

government purchases.

In international exchange markets, a rise in interest rates in the United States will cause the demand for dollars to ________ and the supply of dollars to ________.

If foreign holdings of U.S. dollars increase, holding all else constant

Group of answer choices

the balance on the U.S. capital account will increase.

the U.S. balance of trade will increase.

the balance on the U.S. financial account will increase.

the balance on the U.S. current account will increase.

Which of the following would increase the current account balance of the United States?

Group of answer choices

an increase in the amount of income U.S. companies pay out to foreigners who own investments in the United States.

an increase in the amount of money the U.S. government sends in foreign aid to other countries

an increase in net exports

an increase in imports

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Macroeconomics

Authors: Robert C. Feenstra, Alan M. Taylor

Fourth Edition

1319061729, 978-1319061722

More Books

Students also viewed these Economics questions

Question

The quality of the proposed ideas

Answered: 1 week ago

Question

The number of new ideas that emerge

Answered: 1 week ago