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Author Question: A decrease in U.S. federal government budget deficits that lowers U.S. interest rates relative to ... (Read 96 times)

neverstopbelieb

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on: Jun 29, 2018
A decrease in U.S. federal government budget deficits that lowers U.S. interest rates relative to the rest of the world should
 
  A) decrease net exports.
  B) increase foreign portfolio investment.
  C) lead to a current account surplus.
  D) lower the trade balance.
  E) cause the dollar to appreciate.

Question 2

Potential GDP is the value of real GDP when ______.
 
  A. the unemployment rate equals the natural unemployment rate
  B. there is no frictional unemployment
  C. there is no structural unemployment
  D. the unemployment rate is zero


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kkenney

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

A When real GDP equals potential GDP, the unemployment rate equals the natural unemployment rate.


neverstopbelieb

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

Missbam101

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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