(11) The fiscal balance is the difference between exports and imports. government expenditure and revenue. production and consumption. savings and investment. lending and borrowing.   (12) What is the effect of a fall in domestic savings on the rate of interest and the level of investment? Neither the interest rate nor the level of investment change. The interest rate rises and the level of investment falls. The interest rate and the level of investment both fall. The interest rate and the level of investment both rise. The interest rate falls and the level of investment rises. (13) The real exchange rate is defined as the amount of (local, foreign) (currency, products) required to exchange for a given amount of (local, foreign) (currency, products). local currency; foreign currency. foreign currency; local currency. local products; foreign currency. local products; foreign products. local currency; foreign products.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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(11) The fiscal balance is the difference between

  1. exports and imports.
  2. government expenditure and revenue.
  3. production and consumption.
  4. savings and investment.
  5. lending and borrowing.

 

(12) What is the effect of a fall in domestic savings on the rate of interest and the level of investment?

  1. Neither the interest rate nor the level of investment change.
  2. The interest rate rises and the level of investment falls.
  3. The interest rate and the level of investment both fall.
  4. The interest rate and the level of investment both rise.
  5. The interest rate falls and the level of investment rises.



(13) The real exchange rate is defined as the amount of (local, foreign) (currency, products) required to exchange for a given amount of (local, foreign) (currency, products).

  1. local currency; foreign currency.
  2. foreign currency; local currency.
  3. local products; foreign currency.
  4. local products; foreign products.
  5. local currency; foreign products.

(10) Over the last two decades, nominal salaries in Jamaica have increased ______ the increase in the cost of living.

  1. less than
  2. more than
  3. independent of
  4. at nearly the same rate as
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