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Leviafan [203]
3 years ago
9

From 2001 to 2004, the U.S. government went from a budget surplus to a budget deficit. According to the open-economy macroeconom

ic model, this should have decreased a. the supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange. b. both the supply of loanable funds and the supply of dollars in the market for foreign-currency exchange. c. neither the supply of loanable funds nor the supply of dollars in the market for foreign-currency exchange. d. the supply of dollars in the market for foreign-currency exchange, but not the supply of loanable funds.
Business
1 answer:
notsponge [240]3 years ago
4 0

Answer: Option (a) is correct.

Explanation:

Correct Option: The supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.

If the budget deficit increases, then U.S residents will want to purchase fewer foreign assets and foreign residents wants to buy more of U.S assets.

The budget deficit in the economy has to be financed either by borrowing or by increasing taxes. This budget deficit occurred because of the tax cuts and higher government spending.

If a country running a budget deficit, which lead to reduction in national saving. We all know that interest rate is determined in the loan market, where savers supply the loans to the private borrowers.

So, if there is a fall in the national saving, this will reduced the supply of loans from savers, which raises the interest rate in an economy.

This will attract the foreign flow of capital. This means that demand for domestic assets increases because of the higher interest rate.

Now, if foreign residents want to take an advantage of higher interest rate then they first have to acquire domestic currency.

Therefore, higher interest increases the demand for domestic currency in a market of foreign exchange.

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With a​ downward-sloping demand​ curve, average revenue is equal to price A. because the firm must lower its price to sell addit
tia_tia [17]

Answer:

D. ​Actually, average revenue is always equal to​ price, whether demand is downward sloping or no

Explanation:

This is because Average revenue is the amount of revenue that is obtained by selling an addition unit of output. This additional revenue is always = Price as proven by the equation below,

Total Revenue = Price * Quantity

Thus, AR = Total Revenue / Quantity  

Input elements of the Total revenue we get,

AR = Price * Quantity / Quantity

AR = Price  

Hope that helps.

3 0
3 years ago
a country has national saving of $50 billion, government expenditures of $30 billion, domestic investment of $10 billion, and ne
zubka84 [21]

The supply of loanable funds is $50 billion. Thus, option c is correct.

The supply of loanable funds considers only national savings( public savings + private savings), thus the supply of funds shall be only $50 billion. The national savings is the rate that measures the amount of income that households, business, and the government saves. It looks at the difference between a nation's income and consumption.

The national savings rate is the GDP that is saved rather than spent in the economy. It is an indicator of a nation's health as it shows the trends in savings.

Hence, option c is correct, that is $50 billion.

Learn more about national savings here brainly.com/question/15109837

#SPJ4

8 0
1 year ago
Select the examples that best demonstrate likely tasks for Revenue and Taxation workers. Check all that apply.
ArbitrLikvidat [17]

Awnser: A, B, and E.

3 0
2 years ago
Strategic planning is the process _____. the process of creating a marketing strategy for the company’s product line the process
Anit [1.1K]
Strategic planning is the process of defining the company's strategy and making decisions about how to use resources to accomplish that strategy.
6 0
3 years ago
Which of the following is NOT an accurate statement?
Mandarinka [93]

Answer:

The correct answer is c. Workers in high-tech fields do not need good communication skills.

Explanation:

Communication skills refer to the ability to send, receive, elaborate and issue information, ideas, opinions and attitudes of the highest quality and oriented towards personal and organizational objectives. To properly carry out their activities, administrators must have at least the basic skills of oral, written and non-verbal communication related to: communication with clients, communication with their subordinates, communication with their superiors, with the media , sensitivity to cultural differences, among others.

  • Nonverbal communication skills refer to the use of facial expressions, movements and body language for the transmission of meaning.
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Communication is immersed in all the activities of the administrators, intimately relating to their performance.

4 0
3 years ago
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