Author Question: Increased government borrowing stimulates private borrowing because of its effect on interest rates. ... (Read 78 times)

KimWrice

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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.



tdewitt

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Answer to Question 1

False

Answer to Question 2

a



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