In the model of the open economy with perfect capital mobility,________ is an exogenous variable.
A) Y
B) C
C) I
D) S
E) r
Correct Answer:
Verified
Q21: A budget deficit _.
A)may have stimulative effects
Q22: In an economy open to international trade
Q23: If government cuts taxes _.
A)national saving goes
Q24: The domestic real interest rate (r)for a
Q25: In an economy open to international trade
Q27: In the long run,if government increases spending
Q28: _ typically lead to increases in _.
A)decreases
Q29: Increases in _ typically lead to decreases
Q30: How does a decline in the real
Q31: In the long run,larger budget deficits lead
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