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:

Calorie Content

Calorie content is the amount of energy provided by consuming a certain amount of food or drink, measured in calories.

Protein

Proteins are large, complex molecules essential for the structure, function, and regulation of the body's tissues and organs, made up of amino acids.

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, serving as a major energy source in the diet of humans and animals.

Worst Predictor

A variable in a statistical model that contributes least to the prediction of the outcome variable, often due to lack of significant correlation or variability.