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:

Biodegradable Polymer

A type of polymer that can be broken down by biological processes, including microbial action, into natural substances like water and carbon dioxide.

L-Lactic Acid

The left-handed (levo) isomer of lactic acid, often involved in biological processes such as fermentation and muscle metabolism.

Polymers

Large molecules composed of repeated subunits (monomers), which can exhibit a wide range of physical and chemical properties depending on their composition and structure.

Polymer

A large molecule comprised of many repeated subunits, known as monomers, bonded together.