Crowding out occurs when the federal government: a. raises taxes ...

[Yi-Chen]

Crowding out occurs when the federal government:
 a. raises taxes to finance a budget deficit.
  b. refinances maturing U.S. Treasury bonds.
  c. borrows by selling bonds to finance a deficit.
  d. uses a budget surplus to pay off part of the national debt.

Question 2

If the exchange rate between the yen and the dollar changes from 100 yen = 1 to 110 yen = 1, then:
 a. the dollar has depreciated in value.
  b. U.S.-made goods will become less expensive to Japanese citizens.
  c. the dollar has appreciated in value.
  d. Japanese-made goods will become more expensive to U.S. citizens.
  e. there will be an increase in the demand for dollars in the foreign exchange market.

[Jossy]

Answer to Question 1

c

Answer to Question 2

c

[Yi-Chen]

Excellent

[momolu]

Gracias!