time that its budget deficit decreases, then the interest rate will ______________________. Selected Answer: decrease Answers: increase either increase or decrease decrease remain unchanged Question 7 3 out of 3 points
A reduction in government borrowing can: Selected Answer: give private investment an opportunity to expand. Answers: decrease the incentive to invest. increase the interest rate. crowd out private investment in human capital. give private investment an opportunity to expand. Question 8 3 out of 3 points From a macroeconomic point of view, which of the following is a source of demand for financial capital? Selected Answer: government borrowing Answers: savings by households and firms foreign financial investment domestic household private savings government borrowing Question 9 3 out of 3 points In the national savings and investment identity framework, an inflow of savings from abroad is, by definition, equal to: Selected Answer: the trade deficit. Answers: private sector investment. the trade surplus. the trade deficit.
domestic household savings. Question 10 3 out of 3 points A __________________ often results in an outflow of financial capital leaving the domestic economy and being invested in the global economy. Selected Answer: trade surplus Answers: trade surplus trade deficit fiscal deficit twin surplus
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