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eimsori [14]
3 years ago
14

Suppose that the federal budget deficit increases. the increase in government borrowing will cause interest rates to ▼ rise fall

. in an open​ economy, this will make u.s. bonds ▼ more attractive less attractive to overseas​ residents, who will buy ▼ more less bonds and ▼ less more u.s.​ exports, and thus the trade deficit will ▼ rise fall .
Business
1 answer:
yan [13]3 years ago
6 0

Answer:

Rise; More attractive; More; Less; Rise

Explanation:

Suppose that the federal budget deficit increases.

So, there is a need to borrow funds and this will increase the government borrowings. The higher government borrowings will lead to cause the interest rate to rise.

In an open economy, the buyers in the foreign countries are buying more U.S bonds as they will receive higher rate of return from investing in bonds. Hence, the U.S bonds are becoming more attractive to the foreign buyers because of the higher interest rate.

This will reduce the value of U.S exports, hence, the trade deficit (Value of imports - Value of exports) will rise further.

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Answer:

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Explanation:

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5 0
2 years ago
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Ivenika [448]

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3 0
2 years ago
In mary poppins, what animal was on the end of mary poppins' umbrella that spoke?
galina1969 [7]
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5 0
3 years ago
ThingOne Company has the following information available for the past year. They use machine hours to allocate overhead. Actual
frozen [14]

Answer:

the variable overhead efficiency variance is $1,840 unfavorable

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The computation of the variable overhead efficiency variance is shown below:

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7 0
3 years ago
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Ymorist [56]

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