In an open economy with strong international trade, increases in ...

[mpobi80]

In an open economy with strong international trade, increases in government spending are likely to have an overall crowding out effect.
 
  Indicate whether the statement is true or false

Question 2

Suppose a country's net exports equal zero. Which of the following will happen if the volume of imports increases without an increase in the volume of exports?
 
  A) The country will experience a budget surplus. B) The country will experience a budget deficit.
  C) The country will experience a trade surplus. D) The country will experience a trade deficit.

[ladyjames123]

Answer to Question 1

TRUE

Answer to Question 2

D

[mpobi80]

Excellent

[covalentbond]

TYSM