If a Government Increases Its Budget Deficit, Which of the Following

question 170

Multiple Choice

If a government increases its budget deficit, which of the following best predicts the effects?

• A)The real exchange rate appreciates, and the trade balance moves toward surplus.
• B)The real exchange rate appreciates, and the trade balance moves toward deficit.
• C)The real exchange rate depreciates, and the trade balance moves toward surplus.
• D)The real exchange rate depreciates, and the trade balance moves toward deficit.

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Definitions:

Endorsements

Public support or approval of a product, service, or idea, often by a celebrity or authoritative figure.

Fallacious Forms

Incorrect or misleading arguments that contain errors in reasoning, often used to deceive or persuade others.

Strategic Plan

A method by which an organization deploys its resources to realize a goal.

Organization Resources

The assets, both tangible and intangible, that an organization utilizes to function and achieve its objectives.