In an Open Economy Like Canada's, a Policy- Induced Increase

question 55

Multiple Choice

In an open economy like Canada's, a policy- induced increase in the government's budget deficit tends to

• A)crowd out public consumption.
• B)depreciate the domestic currency.
• C)attract foreign capital and crowd out net exports.
• D)attract foreign capital and reduce interest rates.
• E)crowd out net exports and reduce interest rates.

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Definitions:

Data Type Wizard

A tool in software development environments that assists users in selecting and defining the properties of data types to be used in databases or applications.

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