If Action by the President and Congress Reduces the Federal

question 81

Multiple Choice

If action by the President and Congress reduces the federal government budget deficit,then interest rates will __________,the U.S.dollar will __________,and the foreign trade deficit will __________.

• A)increase; appreciate; increase
• B)increase; depreciate; increase
• C)decrease; appreciate; decrease
• D)decrease; depreciate; increase
• E)decrease; depreciate; decrease

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Definitions:

Migration

The movement of people from one region to another for the purpose of settlement, often driven by economic, social, or political factors.

Destination Country's Wage Rates

Refers to the compensation levels for labor in a country where a business might consider relocating or outsourcing operations.

Original Supply of Labor

The initial quantity of labor available in the market or economy before any shifts in demand or supply.

Domestic Output

The total value of all goods and services produced within a country's borders.