Which of the following lists contains only things that decrease when the budget deficit of the Canadian government increases?
A)Canadian net exports, national saving, and net capital outflow
B)Canadian supply of loanable funds, the real exchange rate of the dollar, and domestic investment
C)Canadian imports, interest rates, and the real exchange rate of the dollar
D)national saving, net exports, and the quantity demanded for loanable funds for domestic investment

Question

Quizplus · Accepted Answer

When the budget deficit increases, national saving decreases, leading to a decrease in net capital outflow and net exports.

Which of the Following Lists Contains Only Things That Decrease