Discussion+Section+Problems%2C+Lecture+_5

Discussion+Section+Problems%2C+Lecture+_5 - Econ 100B...

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1/2 Econ 100B Macroeconomic Analysis Professor Steven Wood Discussion Section Problems from Lecture #5 A. Multiple Choice Questions . Circle the letter corresponding to the best answer. 1. Assume that Costa Rica’s government budget deficit is reduced by 10 million colon (the Costa Rican currency). Assuming Costa Rica is a small open economy, you would expect this government’s action to: a. Increase net foreign lending by exactly 10 million colon. b. Increase net foreign lending by less than 10 million colon. c. Increase net foreign lending by more than 10 million colon. d. Increase net foreign borrowing by exactly 10 million colon. e. Increase net foreign borrowing by more than 10 million colon. f. Increase net foreign borrowing by less than 10 million colon. 2. If business taxes rise in a large open economy it would cause the net export balance to _____ and national saving to _____. a.
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This note was uploaded on 10/18/2011 for the course ECON 100B taught by Professor Wood during the Fall '08 term at University of California, Berkeley.

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Discussion+Section+Problems%2C+Lecture+_5 - Econ 100B...

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