In the Open-Economy Macroeconomic Model Which of the Following Falls

question 36

Multiple Choice

In the open-economy macroeconomic model which of the following falls if there is an increase in the budget deficit?

• A)the interest rate
• B)net exports
• C)the exchange rate
• D)All of the above are correct.

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Definitions:

Efficient Output

The level of production at which a company or economy can produce the maximum amount of goods at the lowest cost.

Lawn Maintenance

The routine care and upkeep of a lawn, including mowing, watering, fertilization, weed control, and other activities to ensure healthy growth and appearance.

Efficient Level

The point at which an entity is operating at maximum productivity with the least waste of resources.

Producing Firm's Spillovers

External effects that a company's actions have on other parties or the economy without financial compensation.