If the USGovernment Went from a Budget Deficit to a Budget Surplus

question 48

Multiple Choice

If the U.S.government went from a budget deficit to a budget surplus then

• A)the interest rate and the real exchange rate would increase.
• B)the interest rate and the real exchange rate would decrease.
• C)the interest rate would increase and the real exchange rate would decrease.
• D)the interest rate would decrease and the real exchange rate would increase.

Comprehend the concepts of cultural relativism and universalism and their implications for international business operations.

Appreciate the public's demand for ethical and socially responsible management in organizations.

Understand the concept of ethical dilemmas and their sources.

Analyze alternative views of ethical behavior and strategies to maintain high ethical standards in organizations.

---

Definitions:

Payoffs

The returns or benefits received from a particular action or investment.

Nash Equilibrium

A concept within game theory where each player's strategy is optimal, given the strategies of other players, and no player has anything to gain by changing their own strategy alone.

Dominant Strategy

A strategy in a game theory context that is best for a player regardless of what strategies other players choose.

Nash Equilibria

Situations in a strategic game where no player can benefit by changing their strategy while the other players keep theirs unchanged.