Increased government borrowing stimulates private borrowing because of its effect on interest rates.
a. True
b. False
Indicate whether the statement is true or false
Question 2
An increase in demand for a nation's currency in the foreign exchange market will:
a. cause the nation's currency to appreciate.
b. make it more expensive for the nation to import goods.
c. cause the nation's balance on current account to shift toward a surplus.
d. make it less expensive for foreigners to buy the nation's goods.
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