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QUESTION 1 Government savings is denoted by OY - T - C O Y - C - G OT-G OC+I+G QUESTION 2 If the Canadian
QUESTION 1 Government savings is denoted by OY - T - C O Y - C - G OT-G OC+I+G QUESTION 2 "If the Canadian government runs a budget deficit, then O national savings will increase O national savings will decrease O public savings will increase O private savings will decrease QUESTION "Suppose the US government runs a budget deficit. To finance this deficit spending, they issue Treasury Bills (US government bonds). This will cause bond prices to _ O rise ; rise - and short-term interest rates to _ O rise ; fall O fall ; fall O fall ; rise QUESTION 4 Suppose Germany runs persistent trade surpluses as well as government budget surpluses. This would imply that Germany is amassing. O positive net foreign assets O negative net foreign assets O debt QUESTION 5 The magnitude of a government budget imbalance will always equal the magnitude of that country's trade imbalance. O True O False QUESTION 6 "If a government runs a budget surplus, then they are" O a net saver O a net borrower O a seller in bond markets O accumulating debt
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