If a country's budget deficit increases, then in the foreign exchange market,
A) the supply of its currency shifts right, so the exchange rate falls.
B) the demand for its currency shifts right, so the exchange rate rises.
C) the supply of its currency shifts left, so the exchange rate rises.
D) the demand for its currency shifts left.so the exchange rate falls.
Correct Answer:
Verified
Q11: A rise in the government budget deficit
A)increases
Q12: An increase in the budget deficit
A)reduces investment
Q13: If the budget deficit increases,then
A)U.S.residents will want
Q21: If a country raises its budget deficit,then
Q25: An increase in the budget deficit
A)raises net
Q27: An increase in the budget surplus
A)raises net
Q36: A government budget deficit
A)increases both net capital
Q37: If a government increases its budget deficit,then
Q179: If a country raises its budget deficit,
Q185: A firm produces manufacturing equipment, some of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents