An Increase in a Country's Budget Deficit

question 16

Multiple Choice

An increase in a country's budget deficit

• A)increases net capital outflow,so the demand for its currency in the market for foreign-currency exchange shifts right.
• B)increases net capital outflow,so the supply of its currency in the market for foreign-currency exchange shifts right.
• C)decreases net capital outflow,so the demand for its currency in the market for foreign-currency exchange shifts left.
• D)decreases net capital outflow,so the supply of its currency in the market for foreign-currency exchange shifts left.

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Definitions:

Operational Flexibility

The ability of a business or organization to adapt to changes in conditions, demand, or environment while maintaining efficiency and effectiveness.

Production Batches

Groups or lots of goods produced together during a manufacturing process, often under the same conditions over a specific time period.

Economic Force

Factors or agents that cause significant changes or impacts on the economy, influencing markets, employment, and production.

Global Trade

The exchange of goods and services across international borders, influenced by global economic policies and agreements.