question archive If in an open economy, a country imports more than it exports and the government budget deficit increases: a) Interest rates will increase and the amount of borrowing will increase, b) Interest rates will decrease and the amount of borrowing will increase, c) Interest rates will increase, but the change in borrowing is ambiguous, d) The change in interest rates is ambiguous, but the amount of borrowing will increase, e) Both the change in interest rates and the amount of borrowing are ambiguous
If in an open economy, a country imports more than it exports and the government budget deficit increases: a) Interest rates will increase and the amount of borrowing will increase, b) Interest rates will decrease and the amount of borrowing will increase, c) Interest rates will increase, but the change in borrowing is ambiguous, d) The change in interest rates is ambiguous, but the amount of borrowing will increase, e) Both the change in interest rates and the amount of borrowing are ambiguous
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If in an open economy, a country imports more than it exports and the government budget deficit increases:
a) Interest rates will increase and the amount of borrowing will increase,
b) Interest rates will decrease and the amount of borrowing will increase,
c) Interest rates will increase, but the change in borrowing is ambiguous,
d) The change in interest rates is ambiguous, but the amount of borrowing will increase,
e) Both the change in interest rates and the amount of borrowing are ambiguous.
Option 1
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