Reference no: EM13187005

an increase in the budget deficit
1.raises net exports and domestic investment
2. raises net exports and reduces domestic investment
3.reduces net exports and raises domestic investment
4.reduces net exports and domestic investment

the real exchange rate is the nominal exchange rate, defined as foreign currency per dollar, times
1. US prices minus foreign prices
2.prices in the US divided by foreign prices
3.foreign prices divided by US prices
4.none of the above

net exports of a country are the value of
1.goods and services imported minus the value of goods and services exported
2.goods and services exported minus the value of goods and services imported
3.goods exported minus the value of the goods imported
4.goods imported minus the value of goods exported

liquidity preference refers directly yo Keynes's theory concerning
1.the effects of wealth on expenditures
2.the difference between temporary and permanent changes in income
3.the effects of changes in money demand and supply on interest rates
4.the effects of changes in money demand and supply on exchange rates.

when the dollar depreciates US
1.exports decrease while imports increase
2.exports and imports decrease
3.exports and imports increase
4.exports increase while imports decrease